muses of the moment

January 23, 2013

Longwave Group

Filed under: DOW and S&P500, Economic Crisis, Gold and Silver Investing, Precious metals, The Financial Crisis — totallygroovygirlfriday @ 1:38 am

The Longwave Group has made some of their charts and presentations available for free again. Although, the LWG falls on the deflationary side (and gg is not convinced one way or the other), their charts and conclusions are valuable.

Click here for their charts page.

Some comments on their charts.

Click here for the Inverse Pyramid. Confused on what is liquid money or risky money and what is not? This chart clears it up for you. Your investments should span over varying degrees of liquidity depending on your age, risk tolerance, and other financial needs.

Click here for the Kondratieff Long Wave Cycle. Most valuable chart you will ever see. Whether we have a hyperinflationary or a deflationary winter cycle, the outcome and best investment options are the same. Groovygirl can not emphasize this point enough. It should put to bed any discussion of hyperinflation or deflation. The long term plan to get through either scenario is the same. The only question is should you hold more cash currency or more physical coin currency to protect the value of the bulk of your savings? And if you can’t decide, do 50/50. The amount of money you have in these “best” investments through the winter cycle depends on  your age, risk tolerance, and other financial needs and the Inverse Pyramid chart.

Click here for the Dow-gold ratio with the “seasons” overlapped.

Click here for the gold-silver ratio. You can use this to move silver holdings into gold and gold into silver to maximize value over the course of the long-term bull metals cycle.

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2 Comments »

  1. great post Groovy

    long wave chart rules…

    This is exactly the chart and point that is the hardest to understand.. (the whole arguement on hyper vs def is not important)

    Comment by madmax — January 23, 2013 @ 12:32 pm

  2. Madmax,

    Agreed. The argument is interesting for academic reasons, but as for Main St preparation to get through the resulting depression, unemployment and ever expanding margin between wages and expenses: it is cash, gold, and food supplies, and pay down debt.

    Ask someone who lived through the Great Depression in the US, they will say: Everything was so expensive and we didn’t have any jobs or money. Ask someone in Germany during the Weimar Republic and, guess what they would say? Everything was so expensive and we didn’t have any jobs or money. The only difference is that the Germans could burn their excess currency to keep warm…..

    gg

    Comment by totallygroovygirlfriday — January 23, 2013 @ 1:22 pm


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