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05062010 – Alert May 25, 2010

Posted by easterntiger in economic history, economy, financial, gold, markets, stocks.
Tags: , , , , , , , ,

Be sure to read the business news in the coming days.  Don’t believe half of what you’ll read, though.

This is nothing more than the continuation of the con game, to get you comfortable for weeks or months, as before, and just until the ‘smart money’ finds an appropriate time to leave you holding the bag, while someone else rides off with the riches – they’ve been selling on the highs for months & months, while those who are ‘long’ the market were comfortable (complacent) for those same months & months.

Today’s ‘deep in the red’ excuses were (1) the Greek debt crisis and (2) a ‘bad trade’, from an origin of which no one seems to know.

On the first excuse, Greece represents 2% of the Eurozone economy, and has less than 25% of the impact on our economy than does California; so why didn’t the markets react when California issued their state employees IOU’s last June?  And, on the second ‘reason’, you be the judge.

Buy only near multi-year lows, no matter how hard it hurts at the time, and NEVER  go in further on multi-month or multi-year highs, no matter what you think you’re leaving on the table, or what great news you hear on the sound bites.

It also helps, in general, to keep our minds off of stocks as much as possible, since stocks are negative for the past ten years, are just as likely to be negative or flat for the next ten years, while gold and silver are up in excess of 400% since 1999, with much more upside ahead (triple digits likely in the next 3 years).  One letter I read recommends the following breakdown

  • 40% precious metals, including physical metal, exchange traded funds (ETF’s) or shares,
  • 25% stocks in both U. S. and International indexes,
  • 20% natural resource & energy stocks,
  • 10% Australian & Canadian currencies or currency funds,
  • and 5% interest rate related issues, such as bonds.

This ‘sister & sister’ pair has been keeping up with financial markets for over 25 years.



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