I’m getting tired of reading doomsday posts by people who really don’t have a clue. Many corporations, including financial institutions, will find themselves in serious trouble but the entire world will not return to a barter society anytime soon.
Food is becoming expensive and supplies will be disrupted by weather pattern changes, but volatility is the best way to make money. Haven’t you ever heard, “when there’s blood on the street, buy a property.” Oil prices will increase dramatically, but peak oil or not there are plenty of supplies left in the world to satisfy our most important requirements and new technologies being developed everyday to maintain our conveniences. The world is not coming to an end, it’s just experiencing a titanic shift of power. The best thing you can do is recognize the seriousness of the situation and figure out how to profit from it.
The long term trend for anything that is of limited supply, like gold, is undoubtedly going to be up. The long term trend for food and other commodities in general is undoubtedly going to be up. Anybody who says otherwise is trying to cause temporary panic to create a buying opportunity for himself.
Even as many Americans descend into poverty hundreds of millions of people around the world are being lifted out of poverty. If history is any indication of future patterns as people become wealthy they consume more and when you’re starting from nothing, it’s much easier to grow quickly. Don’t believe the Wall Street propaganda, commodities are not about to crack. There will be temporary hickups along the way, but if you’re confident in your analysis then you should take advantage of those opportunities to build your portfolio.
The last thing you should do is maintain a cash heavy position when central bankers around the world are inflating money supply by double digits annually. People who maintain fiat currencies as a store of value will be sadly disappointed one day when they realize they’re broke. It’s time to get back into the markets, just not American equity markets.
Consider this, all the money that is being created by central banks will ultimately end up in some market somewhere. No matter who receives it first, every dollar’s life begins and ends at a bank and since banks aren’t investing in more consumer debt, where do you think that money will end up?
Repeat after me: agriculture, gold, energy, Asia.
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