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How To Position Yourself Now

Components of a good investing plan
Friday, June 13, 2014, 1:13 AM

Executive Summary

  • Planning determinants for:
    1. Precious Metals
      • Bullion: physical
      • Bullion: stored & tradable
      • Miners
    2. Stocks & bonds
      • Remaining long
      • Strategies for shorting
    3. Real Estate
    4. Debt Management
    5. Income Security
    6. Local Investing
    7. Personal Preparations
    8. Community Preparations

If you have not yet read The Good News In All The Bad Data, available free to all readers, please click here to read it first.

Though we strongly advise in Part 1 to move to cash, it's essential to remember that this is largely a transitional maneuver. The goal is to keep your powder dry during the coming deflationary storm, and then deploy it in as intelligently and timely a manner as possible when your dollars can buy quality assets at excellent discounts. In this Part 2, we walk you through the principal components for building your investing action plan for both in advance of, and when, that time arrives.

Also, we understand that for reasons of options and attitude, simply moving your portfolio 100% into cash is unpalatable or unrealistic for a number of people. Some of you will want to, perhaps even need to, have a percentage of your capital remain in the financial markets for the foreseeable future. So we discuss both long and short strategies for you to evaluate and pick whichever best suits your personal situation.

It's important to understand that the solution set contained below is a superset for your consideration and not a one-size-fits-all recipe (i.e. do NOT take it as personal investment advice!). As strongly urged in Part 1, its best use is as a structured guide for you and your financial adviser to use together in discussing and developing an investment plan customized to your goals, needs and risk tolerance.

Suffice it to say, everything discussed in this report (even the % cash component mentioned in Part 1) should be reviewed with your financial adviser before taking any action. Am I being excessively repetitive here in order to drive this point home? Good...

Precious Metals

One of the biggest mysteries that continues to perplex Chris and me is: Why is central bank liquidity creating price bubbles in every asset class EXCEPT the one you would expect it to most?

Here we have everything from Facebook stock to Las Vegas houses to junk bonds to Beats headphones catching bids at insane prices. As Chris discussed last week with economist Steen Jakobsen, the data for stocks over the past year shows that the worse the balance sheet, the better a company's stock performance has been.

Why is everything down to pure crap being lifted by the giant pool of money sloshing around the planet, but prices for gold and silver -- arguably the highest-grade assets to own -- are so badly languishing?

I won't rehash all of our speculations for why, as there are dozens of recent articles on this site speculating on the topic. But as this year's mega-report on gold drives home, the actual fundamentals for owning precious metals not only remain intact, but they are expanding materially each year. 

Well, the good news here is that the precious metals market is the one place you don't have to wait for the "buy at pennies on the dollar" experience. It's here now.

Prices are not only far below what the fundamentals justify, but... » Read more

Daily Digest

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Daily Digest 7/15 - Oil May Determine South Sudan's Future, UK Charges 2 Brokers In Libor Inquiry

Monday, July 15, 2013, 12:57 PM
  • Precious Metals Stocks: The Most Undervalued Asset Class
  • China Wealth Eludes Investors as Stocks Earn 1%
  • What Sweden Can Tell Us About Obamacare
  • It’s Amazing to Be a Working Mom in France—Unless You Want a Job
  • Britain Charges 2 Former Brokers in Libor Inquiry
  • Oil May Determine South Sudan's Future
  • Climate change is a bigger threat to the Tour de France than doping
Daily Digest

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Daily Digest 6/25 - The Illusion Of The Perpetual Money Machine, BofA Whistleblower Was "Told To Lie"

Tuesday, June 25, 2013, 11:23 AM
  • Turbulent times ahead: Q&A with economist Didier Sornette
  • The Illusion Of The Perpetual Money Machine
  • The Banker Who Was God
  • Bank of America whistle-blower’s bombshell: “We were told to lie”
  • Alberta flooding could wipe $2-billion from Canadian economy in June
  • Bell accused of breaking labour law with unpaid interns
  • David Stockman: Market Downturn A Global Adjustment To Fed Easing
  • A Fiscal Train Wreck
  • Is Deep Sea Mining Worth The Risk?
Blog

Is Gold at a Turning Point?

Precious metals investors' heartbreak may soon be over
Wednesday, June 12, 2013, 9:18 PM

There's no way to sugarcoat the dismal performance of the precious metals in recent months. But a revisitation of the reasons for owning them reveals no cracks in the underlying thesis for doing so.

In fact, there are a number of new compelling developments arguing that the long heartbreak for gold and silver holders will soon be over. » Read more

Daily Digest

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Daily Digest 4/29 - When Terrorism Meets Fraud, Oil Sands Health Concerns Rise

Monday, April 29, 2013, 8:10 AM
  • Army Says No More Tanks, But Congress Insists
  • Germany's Perspective: "How Europe's Crisis Countries Hide their Wealth"
  • Home truths for online falsehoods
  • When Terrorism Meets Financial Fraud
  • ‘Peak Fossil Fuels’ Is Closer Than You Think: BNEF
  • MPs Warned not to Expect Shale Gas Boom in the UK
  • Keystone XL: Oil Sands Health Concerns Rise Downstream Of Expanding Extraction
  • Eldorado Gold’s big Greek mining problem
Podcast

John Doody: The Falling Knife of Mining Stocks Has Hit the Floor

Great gains can be bought on the cheap at these prices
Saturday, March 23, 2013, 12:31 PM

Look across the universe of equities these days and it's hard to find a stock sector more thoroughly hated by investors than precious metals mining companies.

They are supposed to act as leveraged investments on the price of the precious metals. However, on average, the sector has underperformed the price action in gold in silver over the past several years. In fact, many miners have been absolute widowmakers.

On top of that, as the stock market has powered to new highs over recent months, many miners and mining indexes have sunk to multi-year lows.

What gives? » Read more

Podcast

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Jeff Clark: So How Many Ounces of Gold (or Silver) Should You Own?

Doing the math
Saturday, November 17, 2012, 3:00 PM

This week, Chris talks with Jeff Clark, Senior Precious Metals Analyst at Casey Research, where he serves as editor of their Big Gold newsletter.

They tackle head-on many of the questions weary precious metals investors are wondering after enduing the volatile yet range-bound price action of gold and silver over the past year:

  • Have the fundamentals for owning gold & silver changed over the past year? No
  • What are they? currency devaluation/crisis, supply-chain risk, ore grade depletion
  • How should retail investors own gold? Mostly physical metal, some quality mining majors (avoid the indices), and ETFs only for trading
  • Is gold in a bubble? No
  • Could gold get re-monetized? Quite possibly
  • Where is gold flowing? From the West to the East. At some point, capital controls will be put in place