Excerpt: "Sweden... has issued guidance... stockpile 'cash in small denominations' for emergencies... computer networks could be disrupted by terrorism or cyber-warfare..."
Gordon: Cash in a bank isn't money. At least, it's not your money. Perhaps you weren't aware that bank deposits are actually a loan to the bank? Recorded on their books as a liability? If I loan you money, whose money is it? It's yours now. Get the idea? Money in the bank is also an idea. An idea that you can't eat, wear, or live in (food?, clothing?, shelter?). No Internet? Sorry, no debit or credit card. No Paypal. No crypto either. You're back to the Dark Ages: 1992. Got cash?
Excerpt: "...capital flows are going crazy pouring out of Europe into US Equities... I do not think people comprehend that we are staring a crisis in the eyes that is so fundamentally changing with regard to how the world monetary system functions... We are stepping into the great financial unknown... where no economic theory has ever gone.
Gordon: First, if you aren't following Martin Armstrong you do yourself an enormous disservice. That said, money moves where it's treated best. There's the devil you know, and the devil you don't know. In a world rife with slippery financial devils, the devil we know (and love) is the U.S. dollar. Trillions in foreign assets pouring out of Europe and other teetering regimes are propelling U.S. equity markets higher. Shakeouts along the way are engineered to kick enough passengers off the bus so the Big Boyz can buy back in on the dips at special discount pricing. It's all great fun, and can be terrifically lucrative... as long as you're the one driving the bus (or at least following it).
Excerpt: "Less than a month ago – Hungary’s Central Bank announced that they increased their gold holdings... 1,000%... Poland also added nearly 10 metric tons of gold... Russia’s adding 20 tons of gold on average each month to their vaults... After two decades of selling... central banks worldwide are... diversifying... dollar reserves... gold in a portfolio works well to protect against sudden market drops..."
Gordon: Is your financial planner as smart as a central banker? If not, you might wish to revisit the subject of diversification.
Having your entire financial world (income, savings, investments...) priced 100% in dollars, which is to say in Federal Reserve Notes* (a/k/a 'dollars') does not represent diversification. It represents faith in the system. Do youhave faith in the system?
* The Federal Reserve Note (FRN) is not federal, there are no reserves, and it fails the legal definition of a note. Other than that, everything is perfectly fine!
The FRN is a fiat coupon issued as evidence of debt by a private banking cartel that lends its product to the U.S. government and charges interest for its use which "We The People" reimburse through taxation which, I regret to say, is unlawfully applied.
Our entire money supply circulates as debt, the interest due on which does not exist at the time it is created and only comes into existence as further debt is issued.
Please do not refer to this as a Ponzi scheme or people will look at you sideways.
I would point out that, mathematically speaking, there is no possible ending for this system other than eventual failure and reset.
If any of this strikes you as potentially troublesome, diversification offers an alternative selection in personal wealth management.
Closing thought: Do squirrels prepare for a harsh and bitter winter by saving up Guaranteed Squirrel Coupons with The Great Squirrel Leader displayed in the center and a picture of an acorn in each corner?
No, they do not. They save the real thing. That is how they survive the winter.
Are people as smart as a squirrel? I would not dream of offering that answer. Only the future of civilization will tell!
Excerpt: "Workers will be able to contribute more to their retirement accounts in 2019... The limit increased to $19,000, up $500 from 2018... The IRS is also lifting the contribution limit for individual retirement accounts... to $6,000 2018."
Gordon: A few observations.
* 401k & IRA plans are not guaranteed investments.
* They are tax deferral schemes from Congress.
* Yes, markets do go UP. They go DOWN too.
* When the market goes DOWN, so will your plan.
* Congress will never allow plans to short stocks.
* Which is why your plans hold bullish funds only.
* Solution: Roll your plans into an IRA.
* Designate it a self-directed IRA.
* Do your own stock and mutual fund picking.
* Including buying inverse ETFs...
* That let you profit from a falling market.
* Or stay stuck northbound on a southbound bus.
Excerpt: "Expect to pay more for groceries next year... Major food giants... have all announced they will need to hike prices in 2019 to offset higher freight and ingredient costs... Hershey’s... announced... plans to charge more for chocolate and other candy next year... Nestle is... raising its prices for bottled water..."
Gordon: Hedge your future costs of rising food prices by buying an inverse commodity ETF.
As commodity prices rise, share values rise accordingly, thereby offsetting price increases at the grocery store.
It's as simple as a playground see-saw!
Just put enough ETFs on one end to offset those bags of groceries on the other end.
Article: click here
Excerpt: "...most hedge funds have sharply underperformed their investors' expectations... Unlike most of their peers, Citadel and Millennium... have a backlog of investors who want to invest with them... [having] averaged 19.1% and 14% annually, respectively..."
Gordon: Keeping in mind that you need about $250K for a hedge fund to return your phone call, the universe of hedge funds has significantly under performed over the past decade, with just a few funds producing consistent profits.
Yet these are supposed to be "the smartest people in the room," armed with artificial intelligence and high speed neural networks
As for top funds Citadel and Millennium averaging 19.1% and 14% annually, that works out to 1.2% - 1.6% per month.
Not particularly impressive. And this is the best the world has to offer?
Add to this the fact that the true rate of purchasing power destruction is currently running close to 6%. This amount of "inflation" must first be overcome before there is any real, net ROI.
Now when we subtract 6% from the returns above, we get 13.1% and 8% respectively. Dividing these net returns by 12 gives us .7% and 1.1% net monthly.
Our happy little team of WSU traders can outperform these kinds of returns drunk and blindfolded (not recommended for optimum performance ;-).
Gordon Philips is a contrarian wealth coach, currency trader and lifetime student of hidden (i.e., actual) history who trusts politicians, academia and the financial media about as far as he can throw a sold gold brick.