Regarding these Interesting Times
Aloha All
We realize for some talking about money may be the ultimate taboo.
We also know these are challenging economic times, so we are sending this complimentary Winter 2009 Post with valuable ideas and no obligation.
We have answered the call to do this for several years and have been grateful and thankful for the response and success stories.
Since we began our 50-year financial career pulling weeds and collecting silver dollars, we listened to Kamaainas for their market experience and guidance. Our grandparents, parents, Warren Buffett, Phil Fisher and Sir John Templeton gave wisdom.
Now we are old and retired from Merrill Lynch, Psychological Services and Stanford Capital.
We worked as professional account executive, counselor, financial consultant, funds manager, media guest, preceptor, public speaker and investment banker from the 1974 market lows through the 1981 Dawn of a New Bull Market in Treasury Bonds at 13% to the 2000 market top when we retired. One of our medical device deals was taken private for $11.4 B and we now live the simple life.
Along the way we noticed Mind, Money and Markets, (the title of one of the Stanford Courses we taught), have a rhythm or wave.
We told family and friends the 2000 Year of Jubilee declared by the Pope would tip from 1980s Summer Growth and 1990s Autumn Harvest to Deflationary Winter.
We said government would fight deflation with inflation, a fight government was ultimately likely to lose. Demographics, Freedom and Markets are far more powerful than Wall Street, Washington, DC or the Committee of 300.
We mentioned $255 gold, $260 platinum and $4 silver might be a good hedge for capital preservation. But that was yesterday. Now they are overdue for a serious correction.
We sold high techs in the Spring of 2000 and bought closely-held stocks again in 2002 near Dow 7592 at bargain prices.
We told friends and family with significant real estate gains before Dow 13,930, that it was time to lighten up in real estate and stocks and get liquid.
We adopted the Internet Avatar Rich Cash so we could speak freely, generously, honestly and openly on our website and elsewhere on the internet, establishing a track record of trust.
To pay it forward, we gave small quarterly seminars by donation in Kauai and Lake Tahoe re getting financial houses in order for the Winter Jubilee Season. This Winter Jubilee Season may last from a decade to two or more, as happened from 1929 to 1949 and beyond in real terms.
We ran Charts with Hearts at Stockcharts.com, showing the effects of government inflation creating asset bubbles. We were fortunate to catch the Pessimistic March 2009 bottom for a nice ride, with closely-held CDE one of the best performers. Coeur d’Alene Mines, Heart of the Pick, was up +6.9 times from last year including a reverse stock split.
Now we share some objective common sense with no obligation. We learned from Sir John Templeton the time to sell may be when we most want to buy, and vice versa.
Now that Gold came close to $1200, Platinum to $2251 and Silver to $21.44, and thundering market pundits jumped in with both feet and wild forecasts which we can’t and don’t make, we think it may be time to raise more cash to keep life in peace and harmony.
We learned from one of our wealthier clients the value of keeping our portfolio in balance by thirds. Think of a Mercedes Hood Ornament or Peace Sign. If we divide our assets into Rock, Paper and Scissors, the market tells us when to lighten up. We have cash scissors to cut good deals at lows when the herd is selling. We use our heart to know when it is time.
While headliners point out the dollar has fallen some –54%, with public experts are talking about the fearful return of inflation and even hyperinflation and devaluation, we think cash and food may be a scarce commodity king for some time, with all the unemployment, upside down mortgages and loan defaults from Wall Street to Dubai.
We think people may be unclear about economic realities including deflation, falling money supplies, high unemployment, contracting economy, high real rates of interest and the dollar, so we provide an accurate link to a picture of these:
http://www.shadowstats.com/alternate_data
We observe on a personal level the best antidote to unemployment is doing good works by creating our own jobs doing what we love.
We note Chinese Stocks have been declining since August a year after the Olympics. We think China may be overbought like Japan in 1989.
Japan tried the same borrowing, spending and zero rates that Washington DC implemented. The result was Japan in depression for two lost decades, with a working population retiring ahead of US.
Guess we can’t overcome demographics by borrowing or promising our way to prosperity. We can work with the natural cycles.
America exported many decent jobs, much manufacturing and too much debt, while importing too many cheap consumer goods and illegal labor.
Yet the fact remains that after the Eurozone, America remains the second largest world economy in purchasing power, almost as large as China, India and Japan combined.
So an American Obituary may be too early.
We think our future belongs not to borrowers and consumers, but to producers and savers.
That is why we have worked with people on their vocation. We have shown them how to set up simple lifetime automatic investing programs with Leading Companies at Computershare, where companies like XOM and WMT offer no or low-cost education, retirement or saving plans with growing dividends that smooth out market cycles.
https://www-us.computershare.com/Investor/Plans/buyshares.asp
For people who have a passion for vocation, profits and capital preservation like us, we offer two valuable subscription letters with one-year money back guarantees.
The $2000 a year Big4 Weekly Asset Allocation Report© is a list of fundamental positions for investors who use Trailing Buy and Sell Stops. Big4 is based on what smart wealthy insiders are currently doing with their money, the short and long of it. Big4 returns ranged from the +1% Short 3 Month Euro to the +7600% CO2, without leverage.









