moneyguy By moneyguy, 21st Dec 2009 | Follow this author | RSS Feed | Short URL
Posted in Wikinut>Money>Investing

What the shills in the media won't tell you... astute investors realize media hypes about the economy turning around is blatant lying....instead, an impending Financial Tsunami is just ahead... those in the know are already taking to the hills as well as making the right investments to succeed in this climate.


Financial Catastrophe Ahead!

There has been much talk of the recession ad nauseum.... by so-called 'experts' who were surely asleep at the wheel when the very forces predictably were at work undermining the financial industry. As an investor for over 40 years I attribute my consistent successes to many strategies accumulated over time through trial and error as well as understanding market forces and utilizing these strategies whenever I saw opportunities.
As 2009 comes to a close these same 'experts' are predicting a rebound in the economy as they point out various signals which they claim are sure signs that the recession is drawing to a close. Contrary to these glowing reports by these experts.... ( I often wonder why these shills are able to continue holding their jobs as commentators, etc. when all their information has always done more damage to investors than good)... the Financial 'Tsunami' has already been generated. Three facts exist that lend credence to the coming tsunami; (1) foreclosures will continue to rise as the unemployment rate soars... commercial property foreclosures are just the tip of the ice and will increase exponentially as businesses continue to close shop and property owners default; bailed-out banks are unwilling to release credit as well as loans (2) the Democrat-controlled Congress and the Obama administration has already increased America's debt to 13+ TRILLION DOLLARS and counting; and more tax increases are due to pass under the guise of HealthCare and other 'Stimulus'- style pork-barrel spending by Democrats ; this debt is being cast upon our grandchildren as well as those not born yet, and like Carter Obama will be thrown out of office (3) oil prices will once again go through the roof.... going above the recent highs of 2008.
These conditions exist as the rumbling of earth's inner core and mantle precedes an eruption. Oil prices will exceed $125-$150 by the end of next year as oil production is drastically cut back producing an oil shortage exceeding those of the 1970s; yet, despite these signs the media is hard at work doing what they do best: LYING! Maybe the media is in self-denial or just content to do what their bosses tell them in order to hold on to their jobs; or maybe they just won't do JOURNALISM! The journalists of the 1930s and 1940s actually endeavored to report the TRUTH. Yet, the media today will not report that the economy is getting ready to implode.
For astute investors, there exists many opportunities in today's climate. Consider Silver and Gold. As always, these precious metals have always provided a safe haven in a recession (or depression) and are a good investment as prices climb... investors are taking delivery of these metals but I have found that eating CORN is better than chewing on a Gold Sovereign. For years, I have played Corn on the Commodities Exchange and continue to this day.
Having knowledge of impending disaster such as the Financial Tsunami is HUGE! Climbing to a safer destination or having your helicopter ready as the tsunami approaches should give one ample time to escape to live another day. As an investor, opportunities I am presently vested in are: (1) silver and gold (futures only) (2) Commercial properties (in default) (3) Australian and New Zealand Dollars (4) oil shares in "Pacific Rim of Fire" company and oil futures options (5) commodities; corn and wheat (6) forex and bonds futures.
As the economy worsens and the Financial Tsunami approaches (1) transportation companies will be devastated; already ailing airlines, bankrupt automakers, and transportation companies (Fedex and UPS) (2) banks and realtors will continue to 'hedge' home prices already in the gutter; unemployment will rise to 20% by 2012 as Congress continues to throw tax money down the toilet for pork-barrel subsidies (3) and as oil production shrinks around the world and consumption rises the price of oil could well exceed the highs of 2008. The oil shortage of 1973-1974 knocked the economy on its back, and wiped out half the value of the Amercan Stock Exchange; another oil shortage in 1979 again quadrupled oil prices, sending inflation to its highest level since WWII and soaring interest rates and mortgage rates destroyed both businesses and home prices.
As I have mentioned, my strategies during both oil shortages were basically the same back then; I purchased defaulted commercial properties, conducted property allocation studies to maximize IRS-sanctioned accelerated depreciation, leased NNN (10 years) and exchanged (1031) when depreciation schedules had expired. Today, these properties are purchased and exchanged through my children's and grandchildren's 'redirected' IRA's which actually owns the real estate and exponentially derives income from them...the 1031 exchange strategy has worked for me for over 40 years and one day in the future when my granchildren,s children claim the property ALL TAX Liability will no longer exist
Ten years ago, I purchased 1,000 contracts of Brent Crude ( I believe it was somewhere around $16-$18 @ barrel) and sold at $25... had I continued to hold my ROI would have been very substantial indeed. But the commodities market is 'unfriendly' for 99% of players so I have developed my own strategies based on several historical criteria my favorite being CYCLES. In nature, there are many cycles revolving around life; winter, spring, summer, autumn. Fisherman and farmers have depended on knowing when to fish or plant; having almanac-like knowledge could mean bounty or catastrophe without this knowledge. When playing Corn I have accumulated information on everything related to this crop and only then, will I render a decision to buy. The same holds true for any investment. I liken the commodity market to the great Mississippi river; some days it can be gentle and you can wet your feet but other days it can wash away anything in its path. And if you are fortunate to 'wet your feet' in this market you may accumulate great wealth.

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