Thoughts from the Frontline

The Bottomless Well

By John Mauldin

March 24, 2006

The Bottomless Well
A Quad Here, A Quad There
The Paradox of Efficiency
Venture Capital and Writers

Today we begin what will be an intermittent series on oil and energy. Each and every year there is a need for more and more energy of all kinds. The one thing we can say with confidence is that energy demand and usage in the next 20 years is going to increase dramatically as more than half the world aspires to middle class (and more!) life styles, which will put huge demands on our energy resources. Will oil production slow down and then peak in the future? Quick answer: yes. Will we run out of energy? Quick answer: no. But that implies a shift in how we currently produce and use energy.

But first, I am really excited to be able to announce that I have a new relationship with EFG Capital, an affiliate of EFG Bank, which is the third largest bank in Switzerland (based in Zurich). EFG will be working with me in helping clients in Latin America, Switzerland, the Middle East and Asia. They join a growing family of partners with whom I work: Altegris Investments in the US, Absolute Return Partners in Europe and Pro-Hedge Investments in Canada. Our mission is to help accredited investors find alternative investments like hedge funds and commodity funds, as well as other investments, that make sense in today's investment climate. Rather than traditional long only stock portfolios, we look for managers who have discovered a niche where "alpha" is lurking and who have developed a system for attempting to mine that alpha. One of the nice things about having an international group of partners is that each firm does a lot of research in trying to discover managers and funds, and by sharing that work, it multiplies the "reach" of the entire network. The sum is indeed greater than the individual parts. EFG is going to be a real important part of the family and I am really happy to have them as a new partner. (Past performance is not indicative of future results, and there is no guarantee that any investment program will result in positive gains.)

If you are an accredited investor (Basically $1,000,000 or more net worth) and would like to know more about how we can serve you, I invite you to go to www.accreditedinvestor.ws and fill out the form and one of my partners will be in contact.

(In this regard, I am president of and a registered representative of Millennium Wave Securities, LLC, member NASD. Please read the risk disclosures at the website…

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