The vote that pushed me over the edge

By Andrew Snyder, TodaysFinancialNews.com

Baltimore — (TFN): Somebody get a bucket because I’m about to puke. I am having an impossible time trying to digest what I’m reading and hearing this week.

How could things have gotten this bad?

My sister is one of those liberal teacher types with an ideology that so many of us like to pick apart. It’s sort of a sport of mine, but she understands and takes it like any sister should take a sibling rivalry. She drops her kids off at my house with little to no notice.

With our divergent political beliefs, you should have no problem guessing my reaction when she recently told me she was applying for dual citizenship in France.

“I just want my kids to have the best opportunities available to them,” she said. I just about plopped my pants when she showed me the paperwork. Opportunities… in France? She’s got to be kidding me.

But it turns out, big sis may be getting wise in her old age. After the news I heard this week, I’m thinking about sneaking through her back window tonight and rifling through her drawers. I want to know the process.

France is starting to look like a libertarian’s dream.

What pushed me over the edge? It wasn’t mandatory healthcare. Or a global tax on Wall Street. Or a Nobel Prize. Or pay caps. Or Cash for Caulkers (but that was close).

It was the news that Congress is working on legislation that would force the NCAA to go to a playoff system.

Yes, just days after committing tens of thousands of young men to a savage war and in the midst of figuring out how to redistribute a vast percentage of the nation’s GDP, a House subcommittee took the time and the tax dollars to discuss the BCS bowl situation.

Normally a subject reserved for sports editors and afternoon talk show hosts, our leaders feel this is a vital move for the American people.

Darn I’m glad I’ve got such a visionary sister. She saw this coming months ago. I just hope there’s time to get out before they lock us all in.

*** I know, I know. Many of you are saying what in the world does this have to do with contrarian investing.

My answer… everything.

Just imagine this country’s future, economically and politically if we have a government that believes college football or even mandatory healthcare is any of its business. Do you think we’re ever going to see the Dow hit 14,000 ever again?

Not unless Obama makes it an order.

I know a lot of investors think gold is the answer, but it isn’t. Hopefully this week’s plunge helps illustrate the point. With just the stroke of a pen, Obama could pull a Roosevelt and suck it all back in. You remember Executive Order No. 6102, right?

The answer is international exposure. Just like my sister, your portfolio needs dual citizenship. If you’re sitting on nothing but domestic positions, you are sitting on a time bomb. Tick… Tick… Tick…

Fire your advisor then seek international diversification. My preference is anything Chinese, but Australia, with its rising interest rates, and even Brazil (it already beat Obama once) aren’t looking too bad.

*** Earlier today, I told TFN readers about a Chinese car retailer that’s been making strong headway (i.e. triple-digit revenue growth) over the last year. If you’ve been reading anything from the group’s publisher, http://www.contrarianprofits.com/wp-content/plugins/alinks/images/extern...) center right no-repeat;" rel="external">J. Christoph Amberger, you know the Asia car market is red hot.

Here’s a section of what I wrote:

“While the Chinese yuan is anything but free-floating against the dollar, a stronger American currency will certainly have an impact on any country exporting goods to the States.

“That’s just part of the reason why shares of AutoChina International (NASDAQ:AUTC) are up by over 15% today. The other major catalyst is the company’s latest fiscal results.

“The Chinese auto retailer is a relatively young company with a market value of $270 million and some 25 dealerships spread across the country. In case you’re not familiar with the Asian market, it’s red hot right now.

“The quarterly figures prove it. Over the last three months, the company recorded revenues of $242 million, a whopping 110% increase over this time last year. It turned the sales into a bottom line of $7 million, yet another triple-digit increase over last year’s figures.

“If you are frequent reader of TFN articles, AutoChina’s action is not new. We’ve been tracking and writing about this stock for months, as it share price quickly climbed from just $7 to over $30 and back to $24 today.

“From here, you can expect shares to top out near the $30 range once again in coming months if current macroeconomic trends (including the strengthening dollar) continue.”

You can read the original piece here.

*** Finally, political incompetency doesn’t stop in Washington. Oh no, state governments are just as useless. Isn’t that right, Arnold?

At home in Pennsylvania, we’ve got a gambling debate on our hands. Right now, slots and electronic forms of poker are perfectly legal, but bring that animated dealer to life and give him a good-paying job, and it’s illegal.

Of course, a political debate like this can’t go on without a little bit of leverage. Tied up with the gambling bill is funding for the state’s major colleges.

That’s right. While the local bozos determine what cut of gambling revenues will go to their campaign funds, tens of thousands of students are looking at higher tuition bills next month as schools like Penn State see their funding held as a political hostage.

In France, my sister’s kids won’t have to worry about tuition… it’s already included in the tax bill.