For those of us who live miles from a town, we keep the cupboards stocked and try to be prepared to face storms and wildfires.
(Not a bad idea for those who live in cities either.)
We look at the U.S. economy and investing the same way. There’s no doubt that the U.S. has large problems with unemployment, student loans, healthcare unknowns, population ‘shifts to the young who will be financing the old, state and federal debt loads.
Financial wizzards view the Great Depression charts with an eye to the simalarities they see between then and now. Others feel the financial seas are
For some time now the investing waters have appeared sunny. One investment analyst says to earn the returns now, have a few reverse positions to protect the gains when the storm approaches. Things such as ETFs in consumer staples and energy and specific stocks innatural gas distributors and producers. Another analyst just questioned those positions recently.
Gold says another analyst is not about inflaation, geopolitical tensions, or what central banks are or are not buying. It’s entirely about the direction of the U.S. dollar as a reflectio0n of the U.S. fiscal situation. He feels the dollar is going down as America’s finances worsen.
Right now, the fall in gold in recent months has upset the historical trend dramatically. He thinks it may go lower.
Other investors stay on the side lines, patiently waiting. However, with so many hopeful financial shores possible ahead, such as the U.S. becoming a major exporter of natural gas, and the many new technological advances, robots and drones and medical break-throughs, what’s to believe?
Will you be too busy enjoying the soft breezes of summer, with a margarita or gin and tonic in hand, to be concerned, or to have a conginency financial plan?