Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
WARNING PAYPAL Making a Grab for US $1200 Stimulus Payments - 4th Apr 20
US COVID-19 Death Toll Higher Than China’s Now. Will Gold Rally? - 4th Apr 20
Concerned That Asia Could Blow A Hole In Future Economic Recovery - 4th Apr 20
Bracing for Europe’s Coronavirus Contractionand Debt Crisis - 4th Apr 20
Stocks: When Grass Looks Greener on the Other Side of the ... Pond - 3rd Apr 20
How the C-Factor Could Decimate 2020 Global Gold and Silver Production - 3rd Apr 20
US Between Scylla and Charybdis Covid-19 - 3rd Apr 20
Covid19 What's Your Risk of Death Analysis by Age, Gender, Comorbidities and BMI - 3rd Apr 20
US Coronavirus Infections & Deaths Trend Trajectory - How Bad Will it Get? - 2nd Apr 20
Silver Looks Bearish Short to Medium Term - 2nd Apr 20
Mickey Fulp: 'Never Let a Good Crisis Go to Waste' - 2nd Apr 20
Stock Market Selloff Structure Explained – Fibonacci On Deck - 2nd Apr 20
COVID-19 FINANCIAL LOCKDOWN: Can PAYPAL Be Trusted to Handle US $1200 Stimulus Payments? - 2nd Apr 20
Day in the Life of Coronavirus LOCKDOWN - Sheffield, UK - 2nd Apr 20
UK Coronavirus Infections and Deaths Trend Trajectory - Deviation Against Forecast - 1st Apr 20
Huge Unemployment Is Coming. Will It Push Gold Prices Up? - 1st Apr 20
Gold Powerful 2008 Lessons That Apply Today - 1st Apr 20
US Coronavirus Infections and Deaths Projections Trend Forecast - Video - 1st Apr 20
From Global Virus Acceleration to Global Debt Explosion - 1st Apr 20
UK Supermarkets Coronavirus Panic Buying Before Lock Down - Tesco Empty Shelves - 1st Apr 20
Gold From a Failed Breakout to a Failed Breakdown - 1st Apr 20
P FOR PANDEMIC - 1st Apr 20
The Past Stock Market Week Was More Important Than You May Understand - 31st Mar 20
Coronavirus - No, You Do Not Hear the Fat Lady Warming Up - 31st Mar 20
Life, Religions, Business, Globalization & Information Technology In The Post-Corona Pandemics Age - 31st Mar 20
Three Charts Every Stock Market Trader and Investor Must See - 31st Mar 20
Coronavirus Stocks Bear Market Trend Forecast - Video - 31st Mar 20
Coronavirus Dow Stocks Bear Market Into End April 2020 Trend Forecast - 31st Mar 20
Is it better to have a loan or credit card debt when applying for a mortgage? - 31st Mar 20
US and UK Coronavirus Trend Trajectories vs Bear Market and AI Stocks Sector - 30th Mar 20
Are Gold and Silver Mirroring 1999 to 2011 Again? - 30th Mar 20
Stock Market Next Cycle Low 7th April - 30th Mar 20
United States Coronavirus Infections and Deaths Trend Forecasts Into End April 2020 - 29th Mar 20
Some Positives in a Virus Wracked World - 29th Mar 20
Expert Tips to Save on Your Business’s Office Supply Purchases - 29th Mar 20
An Investment in Life - 29th Mar 20
Sheffield Coronavirus Pandemic Infections and Deaths Forecast - 29th Mar 20
UK Coronavirus Infections and Deaths Projections Trend Forecast - Video - 28th Mar 20
The Great Coronavirus Depression - Things Are Going to Change. Here’s What We Should Do - 28th Mar 20
One of the Biggest Stock Market Short Covering Rallies in History May Be Imminent - 28th Mar 20
The Fed, the Coronavirus and Investing - 28th Mar 20
Women’s Fashion Trends in the UK this 2020 - 28th Mar 20
The Last Minsky Financial Snowflake Has Fallen – What Now? - 28th Mar 20
UK Coronavirus Infections and Deaths Projections Trend Forecast Into End April 2020 - 28th Mar 20
DJIA Coronavirus Stock Market Technical Trend Analysis - 27th Mar 20
US and UK Case Fatality Rate Forecast for End April 2020 - 27th Mar 20
US Stock Market Upswing Meets Employment Data - 27th Mar 20
Will the Fed Going Nuclear Help the Economy and Gold? - 27th Mar 20
What you need to know about the impact of inflation - 27th Mar 20
CoronaVirus Herd Immunity, Flattening the Curve and Case Fatality Rate Analysis - 27th Mar 20
NHS Hospitals Before Coronavirus Tsunami Hits (Sheffield), STAY INDOORS FINAL WARNING! - 27th Mar 20
CoronaVirus Curve, Stock Market Crash, and Mortgage Massacre - 27th Mar 20
Finding an Expert Car Accident Lawyer - 27th Mar 20
We Are Facing a Depression, Not a Recession - 26th Mar 20
US Housing Real Estate Market Concern - 26th Mar 20
Covid-19 Pandemic Affecting Bitcoin - 26th Mar 20
Italy Coronavirus Case Fataility Rate and Infections Trend Analysis - 26th Mar 20
Why Is Online Gambling Becoming More Popular? - 26th Mar 20
Dark Pools of Capital Profiting from Coronavirus Stock Markets CRASH! - 26th Mar 20
CoronaVirus Herd Immunity and Flattening the Curve - 25th Mar 20
Coronavirus Lesson #1 for Investors: Beware Predictions of Stock Market Bottoms - 25th Mar 20
CoronaVirus Stock Market Trend Implications - 25th Mar 20
Pandemonium in Precious Metals Market as Fear Gives Way to Command Economy - 25th Mar 20
Pandemics and Gold - 25th Mar 20
UK Coronavirus Hotspots - Cities with Highest Risks of Getting Infected - 25th Mar 20
WARNING US Coronavirus Infections and Deaths Going Ballistic! - 24th Mar 20
Coronavirus Crisis - Weeks Where Decades Happen - 24th Mar 20
Industry Trends: Online Casinos & Online Slots Game Market Analysis - 24th Mar 20
Five Amazingly High-Tech Products Just on the Market that You Should Check Out - 24th Mar 20
UK Coronavirus WARNING - Infections Trend Trajectory Worse than Italy - 24th Mar 20
Rick Rule: 'A Different Phrase for Stocks Bear Market Is Sale' - 24th Mar 20
Stock Market Minor Cycle Bounce - 24th Mar 20
Gold’s century - While stocks dominated headlines, gold quietly performed - 24th Mar 20
Big Tech Is Now On The Offensive Against The Coronavirus - 24th Mar 20
Socialism at Its Finest after Fed’s Bazooka Fails - 24th Mar 20
Dark Pools of Capital Profiting from Coronavirus Stock and Financial Markets CRASH! - 23rd Mar 20
Will Trump’s Free Cash Help the Economy and Gold Market? - 23rd Mar 20
Coronavirus Clarifies Priorities - 23rd Mar 20
Could the Coronavirus Cause the Next ‘Arab Spring’? - 23rd Mar 20
Concerned About The US Real Estate Market? Us Too! - 23rd Mar 20
Gold Stocks Peak Bleak? - 22nd Mar 20
UK Supermarkets Coronavirus Panic Buying, Empty Tesco Shelves, Stock Piling, Hoarding Preppers - 22nd Mar 20
US Coronavirus Infections and Deaths Going Ballistic as Government Start to Ramp Up Testing - 21st Mar 20
Your Investment Portfolio for the Next Decade—Fix It with the “Anti-Stock” - 21st Mar 20
CORONA HOAX: This Is Almost Completely Contrived and Here’s Proof - 21st Mar 20
Gold-Silver Ratio Tops 100; Silver Headed For Sub-$10 - 21st Mar 20
Coronavirus - Don’t Ask, Don’t Test - 21st Mar 20
Napag and Napag Trading Best Petroleum & Crude Oil Company - 21st Mar 20
UK Coronavirus Infections Trend Trajectory Worse than Italy - Government PANICs! Sterling Crashes! - 20th Mar 20
UK Critical Care Nurse Cries at Empty SuperMarket Shelves, Coronavirus Panic Buying Stockpiling - 20th Mar 20
Coronavirus Is Not an Emergency. It’s a War - 20th Mar 20
Why You Should Invest in the $5 Gold Coin - 20th Mar 20
Four Key Stock Market Questions To This Coronavirus Crisis Everyone is Asking - 20th Mar 20
Gold to Silver Ratio’s Breakout – Like a Hot Knife Through Butter - 20th Mar 20
The Coronavirus Contraction - Only Cooperation Can Defeat Impending Global Crisis - 20th Mar 20
Is This What Peak Market Fear Looks Like? - 20th Mar 20
Alessandro De Dorides - Business Consultant - 20th Mar 20
Why a Second Depression is Possible but Not Likely - 20th Mar 20

Market Oracle FREE Newsletter

Coronavirus-bear-market-2020-analysis

Economic Depression Wealth Preservation, Investing, and Prepping in 2010

Stock-Markets / Investing 2010 Jan 26, 2010 - 09:59 AM GMT

By: Mac_Slavo

Stock-Markets

Best Financial Markets Analysis ArticleThe trend going forward during this economic depression is getting back to basics. We often discuss ‘prepping’ as a way to protect your family in the event of an unforeseen catastrophe (natural or man-made). Recently, we’ve seen more financial analysts and advisers recommend shifting from traditional investments like stocks, bonds, CD’s and money market accounts, to tangible assets that will gain value regardless of what stock and bond markets do.


Of course, we’re not saying you should go out and spend your entire 401k retirement account on 5 gallon buckets of rice, but diversifying into hard assets on a variety of levels could be a great investment. As the US Dollar continues its decline over the coming years, the price of essential consumer goods is likely to rise. Certain goods, however, like real estate, cars and anything that is driven primarily by credit expansion may experience a deflationary impact in real dollar terms, while others, like food and energy may see explosive price increases.

Paul Mladjenovic of SuperMoneyLinks.com discusses 3 Things Everyone Needs to Do with Money in 2010:

“OUR GOVERNMENT CAN NOT SPEND OUR COUNTRY INTO TRLLIONS OF DOLLARS OF DEBT WITHOUT CONSEQUENCE.

I am working on my next set of forecasts and seminars but before they are out, I want everyone (and I mean EVERYONE) to consider 3 simple things to gain greater financial peace of mind:

-Diversify away from paper assets.

-Accumulate essentials.

-Re-focus your portfolio with emphasis on “human need”.

[Read the full, expanded article]

In Buy Commodities at Today’s Lower Prices, Consume at Tomorrow’s Higher Prices we offered some ideas about how to be a ‘prepper’ and ‘investor’ simultaneously.

“If you are a prepper, for example, who is already stocking essentials foods and goods, you’re way ahead of the game. As commodity prices continue to rise for a variety of reasons, your “investment” is paying off in real terms. Buy 10 pounds of rice today for $10, and when that same bag of rice goes to $20 a year or two from now, you can say you earned a 100% return on your investment! And the great thing about your investment, is you don’t have any counter party risk, for the most part, meaning that you own the physical good and it is in your possession — you take delivery at any time!”

For those interested in investing some of their wealth into real, tangible assets, consider the following as food for thought:

  • Precious metals
    Though gold and silver are no longer considered money by most “mainstream” economists, the fact is that central banks in China, India and Russia have been continuing to stockpile precious metals over the last decade, and they will likely continue to do so going forward. Why? Because as all or most of the paper currencies around the globe are debased, gold and silver will become the de facto monetary unit against which other currencies are valued. As Dr. Marc Faber has said on several occasions, “Own gold and become your own central bank.” Many contrarian financial advisers who lean towards the Austrian school of economics recommend allocating 10% to 20% of your current investment/retirement portfolio to gold. If you are banking on having that money when you retire, consider speaking within your financial adviser about purchasing precious metals in the form of mining companies or ETFs. If possible, a portion of your holdings should be in physical bullion like bars and coins, which will provide added security as you will have no counter party risk because you have it in your possession.
  • Food
    As the US Dollar loses value and other countries become hesitant about fund our trillion dollar debts, the cost of food will continue to rise. Combine the dollar’s monetary issues with the fact the many farmers around the world are unable to gain access to loans to continue or expand operations, and you have the potential for prices increases no just because of dollar debasement, but supply problems. The other threat for food is that we may very well experience a perfect storm event, such as that experienced in the dust bowl of the 1930’s, meaning that heavy rains, or heat or cold may affect agricultural output, further straining supplies and pushing prices higher. Foods like rice, legumes, pastas, wheat, oats, and canned goods could be purchased today and stored, in some cases, for up to five years or longer. Consider the price increases that can happen in these food stuffs over the next five years and this investment may see significant gains. And again, you eliminate counter-party risk because you are holding the tangible assets yourself. (The following video shows how The Survival Mom has dedicated a room in her home for just this purpose)
  • Sustainable Living
    Well known trend forecaster Gerald Celente has suggested that one of the mega-trends of this decade will be living on less and becoming more self sustaining. Individuality will return to America, and a push to distance oneself from the “grid” will take off for a variety of reasons. Rising food and energy costs are likely to be two of the major catalysts for this trend. How can you invest for yourself? First, consider investing your time and money into skills development like gardening, farming, sewing, woodworking, or hunting, as these skills can certainly be an investment that will pay off in the future. While it may not be feasible for most to become farmers in terms of commercial enterprise, it can be accomplished on a personal level by those who have a bit of desire and choose to expand their skills base. Urban gardens are already popping up all over America as the micro-farming trend continues to gain acceptance. Even in the suburbs, on a fifth of an acre of land, those with the ability to think outside the office cube can grow enough food to support their entire family for a year.

    For those concerned with rising energy costs, your options are basically limited to investing in energy stocks and ETFs, or, investing in yourself and create your own supply of energy. Learning how to develop and implement a power grid in the comfort of your own home will not only give you the skills to earn a living in the future, but to provide nearly unlimited energy for your household through use of solar, wind and hydro power. Investments into alternative energies for your home may seem costly, but not if you consider the rising cost of your electric and gas bills over the next couple of decades. Sustainable living investments are not one-off investments, say, like storing a bucket of beans, but rather, pay dividends forever.

  • Clothing/Footwear
    Though not often considered as investments, extra clothing, especially things like socks, underwear, house shirts, shoes, sweat shirts and sweat pants, will likely move up in price as well. While adults may be able to stretch their close for several years without replenishing their closets, children are a whole different story. If you’ve got kids, this is one investment that can really pay off. Purchasing graduating sizes of clothing for your kids with a time horizon of 3 - 5 years can really save you money down the road. It is true that in America today, these items are readily available and imagining a scenario where these items will not be on store shelves is hard to do. But consider the East Block circa 1985, and you’ll have a different perspective. Because of isolationist policies, closed currency and price controls, these items were very difficult to come by. If the US experiences a currency crisis, it will have an immediate and significant impact on the USA’s ability to acquire goods from manufacturers around the world, as the price for goods will be difficult to determine because of the potential for massive currency fluctuations. If not for yourself, consider stocking some reserve clothing for your kids.
  • Hard Assets in General
    Recently, President Chavez of Venezuela devalued the Bolivar, Venezuela’s currency, and within a few hours residents of the country flocked to stores to spend any physical cash they had on hand or in their bank accounts. When a currency is devalued, either over night or over a period of months and years, the purchasing power is destroyed. What you could buy today for $50 will cost $100 later. We’re not suggesting you spend all of the cash you have, but take into consideration some of the things you regularly spend money on daily, monthly or yearly. Can you purchase those items now and save them for later use? If so, wouldn’t you rather pay 10% or 20% or even 40% less now than three years from now?

It is important to be prudent with where one might invest their money, as it is impossible to say for certain that an inflationary environment is in our future, and which goods will be affected by increased prices. But all signs point to an eventual devaluation, officially or unofficially, of the US dollar. While the aforementioned “investments” are not traditionally accepted and your financial adviser might think you’ve gone off the deep end, they are worth considering and provide you with another option for protecting your wealth.

By Mac Slavo

http://www.shtfplan.com/

Mac Slavo is a small business owner and independent investor focusing on global strategies to protect, preserve and increase wealth during times of economic distress and uncertainty. To read our commentary, news reports and strategies, please visit www.SHTFplan.com

© 2010 Copyright Mac Slavo - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules