Monday, March 25, 2013

Financial Strategist: “They Don’t Realize That They’re In a Bubble Yet… Until It Pops”

By all accounts, the mainstream media and corporate leaders would have us believe that the world is in a new bull market. They’ll point us to the stock market as evidence of their claims that the economy is growing and life for the average citizen is returning to normal. Few will discuss the fundamental issues facing financial markets, the least of which is continued unemployment and less consumer spending. Even fewer are willing to, or even capable of, explaining the monetary machinations that have pumped up stock markets and left trillion dollar deficits in their wake.
There are, however, analysts like Doug Casey and Marin Katusa of Casey Researchwho understand what’s really going on behind the scenes, where it will eventually lead, and how to thrive in a world of uncertainty where the only things of value when the illusion is exposed for what it really is, are hard assets.
Marin Katusa outlines some key strategies to consider for diversifying yourself ahead of another massive financial meltdown.
From the main markets, because we are in a currency crisis, the major markets… look at Apple, look at Samsung, look at Amazon… they are in a raging bull market. The major media, the big funds, the pension funds… they’re focusing on the bull market that they are in.
A bubble is invisible when you’re inside the bubble.
They don’t realize that they’re in a bubble yet… until it pops. 
…I don’t think this is a negative for gold at all. Gold’s held quite well during all of this. People have shied away from the resource sector. There have been nationalizations of resources globally.
And yet, gold is still holding because there is a true value to gold. It is the true currency globally. 
And its time will come.
Watch as Casey Research strategist Marin Katusa discuss how to Thrive in Today’s Economy via Future Money Trends:

(Watch this interview at Youtube)

Every one of us has a different outlook and ability, and thus your strategy should focus on your specific needs.
It depends what type of investor you are.
I believe that if you want serious, significant leverage to the price of gold,you don’t invest necessarily into gold for the appreciation in gold, you buy actual gold as an insurance policy for the rest of your portfolio…
That’s how Doug Casey and Rick Rule have built their fortunes. Not by necessarily investing in gold. They have exposure to gold as an insurance hedge, but where they’ve made their fortune is due to the successful leverage by exposure to the junior gold exploration companies.

I can mention one [company] that Rick Rule, Doug Casey and myself are large shareholders and have exposure to and it’s done quite well in this market because of the  management, the exploration that they’ve done and the asset they’ve accumulated… It’s run by a very successful young entrepreneur who’s on our NexTen list, his name is Amir Adnani and the company is called Brazil Resources.
…the smart money follows the smart people. Any investor listening to you has to look at the management teams, and that is the most important thing…
However you position yourself, as Katusa notes, will depend on the type of investor you are – and no matter what asset(s) you choose to buy with your hard-earned money, you should consider yourself an investor.
For some, that may include owning hard assets exclusively – things like precious metals, or commodities like grains. For others, who may have twenty years of accumulated savings with major exposure to traditionally safe investments like bonds and popular stocks, owning shares of well managed firms in the international resource sector may provide the diversification and wealth preservation you require should broader stock markets slip back into oblivion or your government moves to ‘tax’ your domestic personal wealth.
Bubbles abound – in global stock markets, currencies, and society’s blissful outlook on it all.
They will invariably pop.
You have options – consider them all, do your research and act accordingly.
Also see: Future Money Trends

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