Mark Twain quote: “I am more concerned with the return of my money rather than the return on my money.”
The Issue: Visionary Investing
I have been following the economic breakdown of the US financial system since 2005. Did you stay in until 2007 and hit 14,000 high? As Jim Sinclair of jsmineset.com says, leave 10-20% to the market on the high or low side. You may have missed the 14,000, but you also missed the past 8,000 of last week. A far better trade for the investor looking to keep money rather than lose it.
I am not a day trader; I am a long term investor. I read and study macro-economic experts, cycles, and visionaries. If you want day trading advice, turn on CBNC.
The implosion of the US economy and the US Dollar is upon us. Most people in the US do not realize that their 401K is toast for the long term. Even if it does come back to its original number of 2006 and 2007, if it’s still in US dollars, the ability for it to purchase anything of value will be greatly diminished. Inflation and the dollar’s decline in purchasing power since 2001 have been slowing eating away any savings.
What to do? Being ahead of the herd
Since the herd has not yet realized the inevitability of the dollar’s situation, real currency is still cheap, if you can find it. In these times, the goal is not a huge return on your investment. The goal is to preserve the buying power of your investment against inflation. Gold and silver is the best way to do that in this environment. Holding physical gold and silver is the best alternative, whether through an IRA or a personal account. Some IRAs will not hold physical coin, so an exchanged traded fund is the next best thing. More detail on these two options in future blogs.
Here are a few details on ETF from Jim Sinclair’s site dated October 15, 2008:
Dear Jim,
I have had many people ask me about how ETF’s work. They often ask detailed questions about what happens to their ETF in scenario A, or scenario B. The answer is that all ETF’s work differently, and how they work is laid out in the legal language in the individual prospectus for each ETF.
Therefore, if JSMineset readers are interested in investing in ETF’s, they should read the prospectus closely and think about the implications of the legal structure. If they do not understand the consequences of the legal structure, they should hire a good securities lawyer to read and analyze the documents for them. We are not lawyers, and we do not want to get into the business of dispensing free legal advice to people. In our opinion, if you buy an ETF instrument you should know what you are buying.
Respectfully yours,
Monty Guild
www.GuildInvestment.com
Resources:
http://www.jsmineset.com -the best economic educational website available for free
