Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 8044 Farrell: Thank you for having me back, Cather- ine. Fitts: We are going to talk about Science and Technology as well as the Big Questions tonight, but beforehand I just want to point out that we are having a dinner in Tulsa, Oklahoma, on Sat- urday. I’m really looking forward to it, and it’s not too late to get tickets. Farrell: I am too. Like I said last week, the con- versations at these get-togethers are really stim- ulating. Everybody chips in ideas and points of view. A synthesis and an analysis emerge greater than anyone could come up with all by himself. I always look forward to them. That’s really why I like going to conferences and speaking – not for the conference itself so much, but for the con- versations off to the side. Yes, I’m really looking forward to it. Fitts: If you look at who has signed up to this point, it’s some of the highest IQs in the net- work. Farrell: How many people are there up to now? Fitts: Well, we have room for only 40. That is my concern. As soon as we fill up we’ll put a notice out, but that’s a good size. It means that we really can have intimate conversations. I’m looking forward. Let’s just dive in: Science and Technology. As I said in our summary last week and in our Annual Wrap Up, Space, Here We Come, space invest- ment will grow. I remember thinking when I re- corded before with you, “Oh, we’re so far ahead of the curve.” And wow! Look at the explosive developments this year. The growth in Asia is vast. Whether it’s G7 or the G20 investment, new activity in space is growing. Farrell: Yes, by leaps and bounds. It’s to the point, that we can barely keep up with it. It started a few years ago. Now something is new every week. The trickle is a running stream at this point, always increasing. Fitts: Right. It’s noticeable because I’ve been working on a screen of space-based companies, and updating our worldwide Annual Wrap Up list of space companies. We’ve been culling to identify all the publicly traded stocks of compa- nies active in space. I took my first culling and did a back test. I was doing a culling of screen force – Solari- model companies, which are companies that have a positive total economic return. I did a quick back test, and they perform at the market index, in alignment with the S&P. Then I did the space companies, and they were 200%. They were double the S&P, and I see no more significant proof. Obviously, the figure includes many defense companies. It combines defense and space, but the message delivered to me is that this invest- ment is serious. As you and I described in part one, Lockheed did a cut and run on its IT division with the Depart- ment of Defense. That means that Lockheed is keeping space investment and letting government contracts go. Farrell: Yes, and that shift is huge. Conventional financial analysis cannot account for all this money. We speculate that it’s going into space investment. The Lockheed story confirms our hypothesis that to prop up hidden finances, com- panies have collateralized space. The speculation certainly predicts how these companies get collat- eral and starts new space projects. So I view the story as big. Fitts: I have to tell you how grateful I am to you for this insight. I remember how in 2012 I went to see you after leaving California, and I was just frustrated trying to understand the financial community, which kept refusing to look at the space aspect of the economy. Something didn’t make sense. Some finance writers were saying, “The world is going to collapse; the world is going to end.” I was say- ing, “No, that is not happening. We’re shifting money, and it’s being reinvested. Something is happening. I have to integrate this hidden sys- tem. I have to integrate space. I don’t know how to do it.” Many people who cover that topic are out in la-la land. You’re not out in la-la land, and Rich- II. News Trends & Stories Solari Report the BY CATHERINE AUSTIN FITTS / 2015 ANNUAL WRAP UP VOLUME 2016 / NUMBER ONE Global InvestmentTakes Off HERE WE GO! SPACE: