Good morning TP,
Thank you for this info. I have listened to Mr. Faber's interview as well. In addition, I listened to the "Riverside conversations" between Marc Faber, Jim Rodgers and Daniel Yergin. When I finished, I was impressed by Mr. Faber's clarity and calm approach as to the current situation and I agree with his conclusions.
Those remarks of Nov/02 by Mr. BernanKaput will be words to quote for years to come.... "just to make sure deflation does not happen"... I suppose for some they may sound like another lullaby, as for me... they are flashing neon red sign that clued me back into gold and hard assets (I wished I had seen it earlier)... so in may case, I shall remember him as Saint BernanKaput for now to eternity -gg
As incredible as it may sound, the future of the US as far as the economy goes looks more like that of Latin America. In addition, I think that there will be some very dramatic changes in form and SPEED that many do not consider even possible at this time... "expect the unexpected" will be the norm.
Given current policies by the US government, I would also be very careful evaluating investments in the US... this is hard to imagine, but I think that in years to come there may be alternative venues... I say this because the government may chose to start taxing quite heavily in order to pay prior commitments... and yes, real estate could be a possible target.
Real Estate (location, location, location) and other commodities... particularly foods will do well... (at least protect against the inflation you talk about.) BUT the key would be zero or very small and well managed amount of DEBT. Some debt could be used, provided some protection against the possible rise in rates..
On the other hand, real estate in other countries may prove a better deal given the possibility of heavy taxation in the US
just to illustrate, the CRB Index
crbtrader.com
CRB Component-markets
CC = Cocoa (NYBOT)
KC = Coffee (NYBOT)
SB = Sugar #11 (NYBOT)
CT = Cotton (NYBOT)
HG = Copper (NYMEX)
PL = Platinum (NYMEX)
SI = Silver (NYMEX)
CL = Crude Oil (NYMEX)
C = Corn (CBOT) NG = Natural Gas (NYMEX)
W = Wheat (CBOT)
S = Soybeans (CBOT)
LC = Live Cattle (CME)
LH = Lean Hogs (CME)
HO = Heating Oil (NYMEX)
GC = Gold (NYMEX)
JO = Orange Juice (NYBOT) |
