Clueless females "feeling all tingly" for The One.
Posted on 05/17/2012 6:22:51 PM PDT by blam
Regardless, more printing is on the way, because the alternative is the utter collapse of the entire Western banking system. And quite probably a few governments, too."
"To me, that is an unthinkable outcome, and one that I have every faith will be avoided at any every cost. It is the main reason that I am quite content to hold onto all of my gold at this juncture. Anybody selling physical gold here is either broke (and needs the money) or is just not paying attention."
Don’t sell gold, but don’t buy it either just yet either. It is likely to get cheaper as things start crashing. Then the printing will start, and gold will rise.
We all know that Obama’s backers are going to create another devastating September Surprise in their efforts to keep him in power.
That will be just in time for Romney to suspend his softball campaign because of the national fiscal crisis.
people better wake before it happens to believe it happens
because no one alive has seen what is about to happen
So, is gold the only resource that fits this bill?
I agree with you on gold.
And below is an April 5th message I sent to some of my readers who are long the ETF GLD. http://www.TableOfWisdom.com
It is an example of TRUE hedging, in this case on the ETF GLD (gold ETF).
These call options went up 50% this week despite having a stike price of $135. I recommended 1 contract for every 100 share lot owned by the investor to hedge the position. The possible loss is absolutely defined (100% of the premium) and was simply an insurance policy against predictable idiocy, which paid off. This way the investor didn’t have to take the bigger risk of selling their gold positions.
Subject: Strategy to quell the effects of Bernanke’sWar on Gold
Date: Thu, 5 Apr 2012 17:58:21 +0000
“Below are some notes I made at Marketwatch in regard to GLD followed by my suggested strategy for GLD, which I strongly suggest you employ. If you are not confident in putting in the order yourself, ask your discount broker to help you.
One must be extremely naive to believe anything the Fed says. Their tactics have been transparent. Every quarter or so they pull out Soros and Buffet to inveigh upon the value of gold (despite there being no call for their opinion in that regard except by Obama/Bernanke) - followed by the Fed flat out lying about QE.
The choices are clear:
1. Outright Treasury default
2. QE 3, 4, 5, 6
I believe the latter despite an intentional war on gold. It is a war to stave off the public outrage before the November elections as gold, oil & food are the “smoking gun” evidence of their treachery. It’s unfortunate the Obama & Bernanke would rather fight the war on gold prices than a war on oil prices, which would actually help the people and economy.
Gold is easier for them to manipulate but the news for Ben & Barry is that gold isn’t causing inflation - they are.
Here’s the Strategy:
Part 1: HOLD your GLD. It will likely double again over the next year.
Part 2: Following is the symbol for a PUT option that gives the owner the right to sell 100 shares of GLD through the third week of December 2012 at the STRIKE price of $135. per 100 shares.
Option Symbol: GLD122X135-E (PUT OPTION)
Each contract protects 100 of your shares for approximately $2.50 per share. So, if you own 200 shares of GLD, buy 2 contracts for approximately $500.00
This will protect your positions for over a month beyond the November election and I believe will actually make you money as a result of the -volatility along the way. You can make money on these because of the sensitivity options have to price changes in the underlying stock. The option doesn’t need to be “in the money” (below the strike price) for the option price to go much higher.
The prices tend to move up on days like 4/4/2012 when gold was down by 3%.
The REASON for employing the strategy is that you cannot afford NOT to own gold given the fiscal condition of the US Government. The risk of not owning gold can well be unprecedented devastation, which is what most people will suffer.
The worst thing an investor can do right now is to fall for what Bernanke is selling and get scared out of real assets and into bonds or other so-called safe investments. Those in cash and fixed income will be ravaged. The option strategy is an insurance policy that will let you sleep at night knowing that you are protected from the economic savagery of the Obama Administration and his lap dog Ben Bernanke who is lying about QE. Your upside is unlimited, while your downside -IS- limited to the price you paid for the option.
Sincerely,
Scott”
I feel good old cash is better, in almost any currency except Euros. Just a bit after the SHTF in Europe, and there is rubble all around, I am going to look for some good European focused mutual funds. I will not try to be brilliant and pick individual companies, but a lot of European companies will survive, and they will be at bargain prices then.
The Big 5 are so expose to European crisis.
So just a couple of weeks ago I was doubting my decision to get out of the market in 2010. Thinking maybe it was time to get back in. Not a chance now...
This scares me to death! What should we do with my 401k investments? I have to leave the funds there but can move out of stocks and into bonds or just cash accout. But I have no idea what to do. When I research, all I find are sites selling either gold or annuities.
Any sinsere help would truly be appreciated!!
This scares me to death! What should we do with my 401k investments? I have to leave the funds there but can move out of stocks and into bonds or just cash accout. But I have no idea what to do. When I research, all I find are sites selling either gold or annuities.
Any sinsere help would truly be appreciated!!
I believe there are index funds that track the entire European stock market. Vanguard may have such a fund.
Great post, as usual. Thanks.
Clueless females "feeling all tingly" for The One.
Probably not.
I've invested (looking forward) in a number of things I know that I'm likely to need in the future, anticipating it will be unaffordable or maybe even unavailable when I need it.
I've made 'life-time' buys of a number of items, incandescent light bulbs is just one example.
I don't think you can go too wrong by being in cash or cash equivalents right now. I don't see a lot of upside to anything right now, and there is a lot of downside risk, so for me preserving and accumulating cash is what I plan to do, until late fall maybe even.
My forecast:
Europe will crash pretty hard soon.
The US will crash too, but not before Europe. It may be possible to invest in Europe first when they hit bottom, then take the profits and invest in the US at the bottom too.
China and Asia are no longer safe havens either.
Oil and basic energy will always be good, but there will be good and bad times to buy. If you like investing in things like natural gas, there may be some great bargains coming along, because in the next six months to a year, the current low price for gas will be taking its toll on gas producers. Wait until gas starts going up again, and find out who the survivors are.
Oil tankers. Oil tankers are currently one of the crappiest market segments out there. Shippers way over ordered new ships during the boom years, and are now facing a glut of ships in a recession. This will correct itself over the next few years, but in the meantime, shippers are struggling to stay alive. You can research this market, find some eventual winners, and invest sometime this year, but be careful that the companies will survive, many have a lot of debt. But right now is about the bottom of the market, you only need to avoid companies that will fail. There may be a shipping ETF or mutual fund that can help reduce the risk of bankruptcies.
It is hard to get interest income right now, such as CDs or money markets, because the Fed has interest rates so low. But if you want interest income, investing in junk bond mutual funds are a good way to get it. By investing in the mutual funds rather than buying junk bonds you eliminate a lot of the risk for an unsophisticated investor like me, but still make a good interest return, around 7%.
And finally, healthcare. You can never go wrong by paying attention to demographics and buying what the baby boomers need. Right now they are retiring, and they need increasing health care. Specializing in elderly focused investments will do well over the next decade. But these companies will be crashing along with everything else soon, so wait till they are on sale.
Duh!!!..and it will be..
(drum roll please...You heard it here 1st!)
A Global currency followed by a One World Government!!!
yeah!..that's the ticket!..../s
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