Thoughts on Markets

Thursday, July 07, 2011

My investment philosophy -Time to take inventory, to take a break from the market, always to rest in the Lord, and always to rejoice in King Jesus

Folks,

This, to me is one of those special times when it is best to do nothing in the market. There are many plays out there to be made, but I am really not interested. Most of my portfolios are well positioned for this period in the market activity. Though the long term prospects for the general bull market seems strong, there are increasing overbought indications. 

The volatility in all markets reveals an uneasiness about all markets. One thing that is certain is that all the unbacked paper currencies in the world are depreciating as the amount of currencies in circulation is being increased by virtually all. There is also for us the unending spending for war and welfare here in America will continue to add to the debt we owe to the world. We are strongly (showing weakness) dependent upon the world to finance our flood of spending on governmental, business, and personal levels. (As a note, most businesses have been able to reduce their costs by lowering employment and moving manufacturing off shore, so some are beginning to show profits, again.) Our unemployment continues to be a drag on any economic recovery.

Do not expect the "recovery" to put us back where we were. As the unbacked paper currencies, with the dollar being the primary exporter of inflation to the world as the reserve currency, depreciate, we will be moving to a lower standard of living. 

I would suggest that it is a good idea to reduce personal spending and lower costs to the extent possible. As a corollary, it is important to be as debt free as possible. We must begin living beneath our means for long term survival as individuals and businesses. Remember, in economic terms savings is actual "Foregone Consumption." Price inflation is all around us as we shop for consumables and energy. It is obvious in costs of higher education and medical bills, as well. 

On the markets, there is much uneasiness which is creating erratic volatility in almost all markets. Therefore, I am sitting aside. Because my portfolios are primarily in precious metals and miners due to my long term view of the depreciation of unbacked paper currencies, I can sit back and rest. I can "Be still and know that I (That is, the Sovereign God of all.) am God."  Yes, I can rest in King Jesus and rejoice in Him. 

For me, it is a time for observation and study of the market place without buying or selling. My portfolios are well positioned for the future as the market continues to reveal it to me. The precious metals seem to me to be the best way to weather the approaching storm as the paper currencies battle with one another for the lowest value. By the way, my portfolios are almost all at new highs, even with the small addition Shares of FVITF last week. 

Following actual possession of gold and silver, I see the Canadian Fund (CEF), Ever Bank Metals Select Accounts, and Gold Money Accounts as a close second. Then I like the mining companies, particularly, those in silver for leverage in the future. Possibly following with, as suggested by Richard Maybuy of Early Warning Report, Defense (War) stocks, because one of America's biggest business continues to be war. It's all about the American Empire which seems to be collapsing. .

Miners from Scottrade:

Currencies from KitCo:

Some Prices: DOW up 100.70 to 12727.10; S&P up 14.17 to 1353.43; NASDAQ up 39.24 to 2873.23; Gold up 1.70 to 1531.10; Silver up 0.66 to 36.56. A fairly strong day in markets.

Best to each, Doug

1 Comments:

  • At 2:44 PM, Blogger TommyD said…

    Doug,
    I really appreciate the last 2+ years you have had me on your email list. Your updates have really helped me stay the course in investing. I too have taken a break this year to help
    clear my mind and watch the market correct and just plane wander aimlessly.
    I look forward to more posts in the future as this thing has yet to run it's course, flushing out all the bad and cleaning out the trash.
    I am also happy that you have shared God's Word with me as you give market comment.

    PEACE to you and yours.

    Tom ( Brother Vegas Bill's brother)

     

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