Wednesday, April 30, 2014

Gold: The Chances Of A 50% Correction

I would remind you that markets have big fluctuations and they always had and a 50 percent correction is common, normal, it always have been. A 50 percent correction for gold would be 960 dollars per ounce. I am not saying that as a target or a recommendation or even a forecast. I am just saying that if gold went down 50 percent it would go to 960 dollars per ounce. and 50 percent corrections are the norm. It would be unusual if it does not have a 50 percent correction anytime.

Related ETF: SPDR Gold Trust ETF (GLD)

Forex Markets: They Are Gigantic

I am sure there are people who try to manipulate markets all the time. If any of them are successful is for the very short term. One cannot manipulate the currency market for any extended period of time. They are gigantic! They trade trillions of dollars a day.


Tuesday, April 29, 2014

Expect Exchange Controls In The U.S.

The things that made America great no longer exist. I am trying to get my assets out of the U.S., most of them already are out of the U.S., I fully expect exchange controls in the next few years and for those of you who have experienced exchange controls, you know they can be deadly to your prosperity and to your way of life.

Monday, April 28, 2014

Moved My Assets Out Of The U.S.

I have moved most of my assets out of the United States because I am extremely worried about what`s happening there. We are the largest debtor nation in the history of the world.

Brazil: The Next Great Country in The World?

Part of the problem with South America is they constantly come up with these absurd governments. You see what is happening now with Argentina at the moment. Brazil is full of natural resources and I am wildly bullish on natural resources but the Brazilians say, this is not me saying this, the Brazilians say, "Brazil is the next great country in the world. It always has been, and it always will be." And then you ask them why and they say, "Look, Brazil is a God chosen country. This is the one that it is the best, he gave us everything but then he sent the Brazilians to run Brazil."

The current leader of Brazil, I am sure she is a wonderful woman but she is also making many of the mistakes which Brazilian politicians historically don`t make until bear markets come to Agriculture.

Related ETF: iShares MSCI Brazil Index ETF (EWZ)

Video: Traveling Around The World, Economics & Politics

Friday, April 25, 2014

You Cannot Be Successful Without Understanding Commodities

Commodities are so pervasive that, in my view, you really cannot be a successful investor in stocks, bonds, or currencies without understanding them. You mus understand commodities even if you only invest in stocks and bonds.

Thursday, April 24, 2014

Investing: Not Rushing To What`s Hot

Whenever I see everyone rushing to bet their money on what`s hot, I remind myself of Bernard Baruch, the Wall Street legend and advisor to U.S. presidents. During the stock-market craze of the late 1920`s, Baruch stopped for a shoeshine one day and the guy working on his shoes began giving him stock tips. His shoes looking fine, Baruch headed back to the office and sold everything.

Tuesday, April 22, 2014

The Merits Of Savings

I was convinced and I still am, that every dollar a young man saves, properly invested, will return him twenty over the course of his life.

Friday, April 11, 2014

Every Trader Must Come To Terms With Losing

As you may have noticed, futures trading is a humbling vocation. Every trader must come to terms with losing, because all traders lose. In fact, most traders lose most of the time. It`s the bottom line that counts - winning more than you lose. But since losses are unavoidable one other primary principle of trading is to limit your losses.

Thursday, April 10, 2014

Speculation Based on Technical Analysis

There are some who speculate mainly on the basis of commodities charts and technical analysis. They swear by various mathematical models and theories. Good luck to them. Frankly, in my experience, I have known few people who have gotten rich off technical analysis. I do know people who have made a lot of money selling technical analysis or books about it.

Tuesday, April 8, 2014

The Keys To Successful Investing

"First, we have found something that is cheap.  Second, a dynamic change in its favor is about to occur."

These principles may sound simple, but they are keys to successful investing and will repay the closest study.  Most investors do not have a problem knowing when an investment is cheap. The hard part is knowing that a change is about occur in the near future. This is where studying markets and their history is so important.

Monday, April 7, 2014

You Cannot Revive An Economy By Printing Money

You cannot revive a country or an economy with printing money and debasing your currency. That has never worked in the long term or even in the medium term. And building more and more debt, that has never worked too.

Video: Japan, Abenomics, Nikkei 225 Index



Video Summary: An outlook on the Japanese economy and on the Nikkei 225 Index;

Economic Cycles: Economic Problems Every 4 To 6 Years

We have had economic problems every 4 to 6 years since the beginning of time. I do not see anything that is going to stop that. We all have not suddenly learned some kind of genius, people in Washington certainly do not know what they are doing, in my view.

So, we are going to have a new problem some day, and when that new problem comes it has got to be worse because the debt is so, so much higher.

Friday, April 4, 2014

Learn How To Sell Short

People should learn how to sell short which is the way to make money in a decline.

Wednesday, April 2, 2014

Skeptical About The U.S. Stock Market

I am a little bit skeptical about the U.S. stock market and most stock markets mainly because what is happening is that we for the first time in recorded history we have all major central banks around the world printing huge amounts of money. (...) So we are all living in an artificial ocean of liquidity which has been rising pretty dramatically for several years. I know its artificial and in my view it is a terrible mistake. But when this ocean dries up we are all going to suffer and suffer badly.

Related: SPDR S&P 500 ETF Trust (SPY)

Tuesday, April 1, 2014

Investing Ideas: You Don`t Need Many

You do not need many great ideas in order to be successful. If you have 15 ideas in your life and most of them work, you will be a lot more successful than nearly everybody you know.

This Is How People Make Money

My experience is that for most investors, they really should only invest in what they themselves known a lot about. Anyone reading this knows a lot about something, whether its cars or fashion, or who knows what. Everybody reading this spends time reading magazines about something or watching TV shows about something. In their spare time they are doing something. That is where they should start because they already know more about those things than I do, or Wall Street does.

When you find things where you already have a passion and interest you are ahead of the rest of us and maybe you find some major change coming. You are going to see it before I am, or anybody else does and then start doing more homework about about the company or about the change and that is how you make money. You will buy long before I do, you will know when to sell it long before I will. That is how people make money.

Everybody wants a hot tip, everybody wants to jump into something but the way to make money is to stay with what you know. You don`t need many great ideas in order to be successful.