Waiting for the big Kahuna Message Board

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Strategies & Market Trends : Waiting for the big Kahuna

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To: No Mo Mo who wrote (90447)	9/17/2009 1:16:08 PM
From: fred woodall	1 Recommendation Read Replies (1) of 94695

Inflation and currency devaluation depends on where you sit and what to do about it depends on your level of urgency. Most will float along. I had the advantage of being without when I was younger but have over time built up a highly specialized business which has taken decades. Profitable but highly sensitive to material cost along with all the metrics a specialized business curtails. Limiting the exposure of a falling dollar and inflation is difficult without jeopardizing quality in the final product while still being competitive and protecting margins. No easy task as this business is highly tweaked. Example:Health insurance which I canceled yesterday after a 33% increase from the previous quarter. Same company for twenty years. Last time we used the insurance was 03’ for a doctor’s visit. Material cost for my business is up 35% from two years ago. Property tax is up 18% from 16 months ago. Besides internals, liability business insurance as increased 200% since 1998. Labor has increased 11% from the previous year mainly due to salary increases which my employees deserve. They work six days a week and represent the best. Could go on but you get the point. Never made payments on anything but the house which is paid off. Mostly cash at this point with 7% in physical gold and 2% silver. Have been purchasing land over the last four years with all the water and mineral rights. 40% sits on the Texas Aquifer which is rented out to a rancher for cattle which covers the tax. There will be a tremendous amount of opportunity in buying land providing owners are not subject to government interference. Jury is still out on that one. Far as gold goes I’m late to the party and prefer silver. Speculation the dollar will superficially rise thanks to government intervention is probably true since realistically it should be trading much lower. So far now we just have to see but regardless inflation will continue to raise its ugly head in a big way. I see it daily in pricing regardless what the rest think. For now I have to trade this market in the most conservative way possible and wait for a top. Once confirmation is in place the plan is to go in heavy. Afterwards I’m thinking Chili and a 44’ C&C sailboat.

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