Save, Invest, Speculate, Trade or Gamble? by Doug Casey

The way you deploy your money will determine the quality of your retirement and probably the rest of your life as well. From Doug Casey at internationalman.com:

save, invest

For some time, I’ve been saying that the economy is in the “eye of the storm” and that when it emerged, the weather would be far rougher than in 2008. The trillions of currency units created since 2007, combined with artificially suppressed interest rates, have papered over the situation. But only temporarily. When the economy goes into the trailing edge of the hurricane, the storm will be much different, much worse, and much longer lasting than what we experienced in 2008 and 2009.

In some ways, the immediate and direct effects of this money creation appear beneficial. For instance, by not only averting a sharp complete collapse of financial markets and the banking system, but by taking the stock market to unprecedented highs. It’s allowed individuals and governments to borrow more, and live even further above their means. It may even create what’s known as a “crack-up boom”.

However, a competent economist (as distinguished from a political apologist, many of whom masquerade as economists) will correctly assess the current prosperity as an illusion. They’ll recognize it as, at best, a natural cyclical upturn – a “dead cat bounce.”

What we’re really interested in, however, are not the immediate and direct effects of QE— “Quantitative Easing”, and ZIRP—Zero Interest Rate Policy. As much as I love the way they fabricate these acronyms and euphemisms, what we’re really interested in is their indirect and delayed effects. In particular, how do we profit from them? What is likely to happen next in the economy? Which markets are likely to go up, and which are likely to go down?

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2 responses to “Save, Invest, Speculate, Trade or Gamble? by Doug Casey

  1. Robert,
    Something weird going on here looks like.
    If this is not an indication of FEAR for some unseen reason in the big banking world? NEVER before!
    There Can be no other reason for this public announcement of a pre bailout move. IMHO. Wells Fargo a prime candidate with their latest moves?
    https://wallstreetonparade.com/2021/07/the-fed-announces-plans-to-permanently-backstop-wall-street-with-a-standing-repo-loan-facility-of-500-billionstarting-tomorrow/

    Liked by 1 person

    • Ursel

      The Wells Fargo thing is truly weird. I have a WF line of credit and I got the announcement. Why does a bank just stop a profitable line of business. Yes, there’s something going, but I’m not quite sure what.

      Liked by 1 person

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