Guild Investment Management Inc.

WE CONTINUE TO SEE INFLATION GLOBALLY

Before we get started, we would like to extend our best wishes for health, happiness and success to all of you. There is much anxiety and hyperbole in the news, and we wanted to take a moment and say that we wish everyone all of the best in life.

BE CAREFUL WHAT YOU WISH FOR

Of all commentaries that we have ever written, those dealing with ethanol and the subsidies that they enjoy have been our most controversial and have generated the most criticism from readers. It seems that our anti-ethanol comments in early 2007 were the most criticized. It is more than a little ironic that this was also one of the several times we warned our readers about the coming rise in food pricesand look what has happened in just fifteen months.

May I include an excerpt from our commentary written on January 26, 2007?

GLOBAL AGRICULTURE WILL CHANGE DRAMATICALLY IN COMING DECADES

ARE YOU KIDDING US JOHN?

Hello and warm wishes to you this April21, 2008.

ARE YOU KIDDING US JOHN?

In the three way battle for worst economic policies, Obama has a narrow lead but both Clinton and McCain are close behind.

In our opinion, there is a simple and accurate one word description of John McCains proposed economic policiesterrible. Is he really a Republican? I doubt it after seeing his proposals.

One thing is sure, if any of the three were to implement the economic policies that they have so far proposed, inflation would take off like a rocket in the U.S. I know it is early, and they all are pandering to the mass of uninformed and economically strapped voters. I also know that their wild ideas will probably not be implemented in full, but come on folksyour economic ideas are inflationary, with a capital I.

INFLATION IS EVERYWHERE...OUR STRATEGY

A LITTLE MORE ON SHORT POOLS

We have had many inquiries about the comments regarding short pools attacking stocks. What types of stocks do they attack? Clearly it would be stocks in an industry with declining fundamentals like financials. The most recent example mentioned of short pools was in the context of their involvement in the Bear Stearns decline that preceded its forced sale to J.P. Morgan. Other financials are likely to come under attack due to their deteriorated fundamentals.

People have asked about whether they are attacking gold, energy, food or base metals stocks. Our answer is, No. In our opinion, it would be foolhardy to short and try to push down companies in industries where demand for their end products is so strong. The industry groups where the short pools are more likely going to find their targets are in the financial and home building related areas.