Investment update; A reader asks about investment ideas and strategies for the future

Gold and precious metals

Thank you for your desire to help your brothers and sisters in the Lord. I also want to review your past articles on gold and silver as I and my husband want to integrate this as a form of insurance. We are trying to determine feasibility of use outside of the system- although I have to re -read your past post on the Patriot Act. And storage options.

Lisa

Here is an article I wrote back in August 2019 in which I observed a strange behavior in gold. (Please note there are old broken links as I must periodically delete content lest I go over storage and bandwidth capacity.)

A gold investor of several years contemplates taking profit; Should he?

In hindsight, the globalists were already planning for the covid campaign and were positioning gold appropriately beforehand. Regardless, I always tell the reader why we own gold. We own it as personal catastrophe insurance. Our physical holdings are to be held discreetly, and offer us protection against catastrophe from lawsuits, liens, judgments, acrimonious divorces, bankruptcies, and outrageous medical costs.  If the courts and creditors don’t know you own it, how can they ever find out?

But be careful, in the post Patriot Act world, gold hoarding could be considered seditious and an act of terrorism, and is confiscatable. But so is currency cash.  Legally, we are to register it with the UST if it’s over $10,000 and intend on transporting it. Of course, nobody does, but don’t get caught with it, and don’t tell the authorities you own it.

Whole life insurance

We are vacillating if it’s prudent or not to continue with a new whole life insurance policy – keeping money in reverse engineered cash value life insurance with New York life. We already have 2 existing policies with PennMutual.

Lisa

Although I do not wish to offer you purchase/sale advice here with a specific investment you already have, I will tell you flat out that I would never purchase a whole life insurance policy as life insurance. I would rather take the amount of extra money I would be paying into the whole life policy vs. term insurance and invest it personally. I would then purchase a term policy. This would go with any type of cash value life policy. I believe cash value policies to be poor investments and present the holder with an opportunity cost. The holder could easily receive a higher rate of return over the long-term in most other investments. The difference in money that one saves from the insurance aspects between term and whole life is enormous over the longer-term.

As one accumulates assets over a lifetime and as children leave the household as they get older, the need to own any life insurance diminishes. Say for instance, a 60-year old married man has a nice retirement plan and a paid off house, the need to purchase life insurance is almost academic.

If I were in this situation, I would make sure I could purchase a term policy at a reasonable rate, then once I obtained that term insurance, I would cash out my whole life or cash value insurance and annuities. The rates of return are low. I would then divert it to other more profitable ventures. Just make sure you can decide on what to do with the money. Money in a checking account has a way of disappearing.

Economics concepts, CBDCs, and a dying dollar

I’m trying to know more economics concepts and what to do to prepare for digital currency, hyperinflation/dollar collapse.

Lisa

If we have a continuation of price inflation, many will be on the wrong side of the equation. The following link is from an article I published back in April regarding housing and a dead dollar.

A dying dollar; How the alt-finance “gurus” got it right, but were still wrong

I would recommend learning Economics basics to start. By familiarizing yourself with Macroeconomics 101 and 202, you can develop some insight into how the world and financial system operate. You can also discern whether people in the alt-finance media are legitimate experts by determining whether or not what they say makes sense.

As for whether understanding Economics will help you comprehend the circumstances behind any upcoming CBDCs or hyperinflationary collapse is less important than overcoming any hardwired biases you may possess. If you are relying on the typical “dollar collapser” in the alt-media, your biases will negate your understanding of Economics. In this regard, an independent mind is more important.

As an investor, I am not currently factoring in CBDCs into my investment decisions as the outcome is too uncertain. Besides, I doubt it will have any effect on our investment outcomes.

Owner-occupied housing and a mortgage paydown

And we are uncertain if we should pay off our home, with the Great Reset.

Lisa

As for whether I would recommend prepaying a mortgage, it depends on your financing terms and mortgage rate. If you have a low rate and a 15 or 30-year conforming fixed-rate mortgage, I would be in no rush to pay it off. Once again, there are opportunity costs involved in paying down a mortgage. If your rate is 3.75%, every dollar you devote to mortgage principal is one less dollar you have available to earn more than 3.75%.

On the other hand, if paying down your mortgage provides you with a piece of mind and sense of security, then perhaps you can channel some extra funds into paying off your house. I bet that your whole life insurance rate of return is less than what your mortgage is costing in interest.

The exogenous factors of the Great Reset are beyond our control and are nebulous, too, so I would not factor this in with your decision about paying off your home.

If I were presented with your situation, I would buy term life if you are young or do not have a lot of assets, cash in the whole life policy, and use the proceeds to pay down your mortgage.  Essentially this is a riskless way to accumulate wealth, and you can use the paydown of mortgage principal to accelerate the amortization of your monthly payment.

Trading and speculation of derivatives and options

Reading your content it sounds like you do options trading as well, if I’m not mistaken. Its maybe something I should revisit. I was wanting to learn more about selling puts but back then my husband was bothered about the idea of doing it- realizing the people and entities that do this helps explain this concept to my husband.

Thank you again for your important work in such crucial, important topics. You are impacting lives. God bless you and your family

Lisa

I have one overriding piece of advice for those looking to venture into trading a particular type of investment vehicle (e.g. stocks, currencies, options, futures, bonds, etc.). Unless you have a mastery of a particular niche, I would not recommend you getting involved more than just for fun. While the gains may seem straightforward, few people make money trading. In fact, I have often read that only about 10-15% of traders make money on a consistent basis.

I no longer trade like I used to, as it takes a lot of time, energy, and commitment to keep abreast on the daily market dynamics. If you are not willing to devote the time necessary, I would stay away. Those who make money are actively involved. As I have gotten older, i have realigned my lifestyle to mitigate uncertainty and undue risk. I am no longer willing to hold an open position of five or six gold futures contracts. I am not willing to want to deal with that tension overnight. This is why I have shifted my energies into more predictable outcomes like property management.

I never really traded stock/future options. I was not interested enough in trading them, thus I was not willing to assume the risk of loss. I studied the math behind them in college and grad school, but I never took interest in them.

The bottom line; if you choose to go this route, you need to be focused and accept the risk of loss.

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22 thoughts on “Investment update; A reader asks about investment ideas and strategies for the future

  1. I’ve thought a lot about your comments about making hay while the sun still shines and must admit I have not made the best financial decisions in the past due to listening to the alt right misguidance and such. I now have the opportunity to potentially work 2 remote jobs to make extra income although I am concerned if this would be dishonest or un christ like to do this? I keep in mind that these companies were so close to cut me off due to avoiding the vax and think that I may have a short window to earn extra income now which they could easily flip a switch in a few months and decide the no-vax ban is back into effect or something else.

  2. It’s the best time to make some plans for the future and it is time to be happy. I’ve learn this post and if I may I want to suggest you few interesting issues or tips. Maybe you can write next articles referring to this article. I desire to read even more issues about it!

  3. I just laugh at the pro-Russian alt-media. The US energy sector is cleaning up. Watch out for the collapsing dollar🤣🤣🤣
    ————

    EU Imports More U.S. LNG Than Russian Pipeline Gas For The First Time Ever

    https://oilprice.com/Energy/Natural-Gas/EU-Imports-More-US-LNG-Than-Russian-Pipeline-Gas-For-The-First-Time-Ever.html

    •For the first time in history, U.S. LNG overtakes Russian piped gas in EU.
    •IEA: The drop in Russian supply calls for efforts to reduce EU demand to prepare for a tough winter.
    •In April 2022 alone, five European countries—France, Spain, the UK, the Netherlands, and Poland—accounted for 54.1% of total U.S. LNG exports.

  4. Everything in the guise of fighting racism, humanitarian crises, and income inequality only help real estate investors and landlords. Corporations and businesses also make out as the wage base is continually being driven down by these immigrants who come in and work for pennies.

    Supreme Court: Biden may end Trump-era ‘remain in Mexico’ policy for migrants

    https://www.usatoday.com/story/news/politics/2022/06/30/supreme-court-biden-trump-remain-mexico-immigration/7540396001/

    In the neighborhood where I live there are about as many spanish-speaking people as there are English speaking. They’re encouraged to be loud and proud and carry the flags of their origin. This is fine with me as rents continue to escalate and they are being filled with Spanish speaking people from Central and South America.

    If the globalists want to sell out the United states, you should at least try to make money watching it happen.

    You should see the nightmare going on in Prince George’s county. Between the 2010 and 2020 censuses, Hispanics climbed from 10% of the population to over 20%. That is forcing many blacks to leave the area as they are now being priced out.

    Just be careful renting out the non-native Hispanics, they tend to overcrowd and have many adults living in the same property.

    1. It may be a good idea to have the only tenants listed on lease as the only ones that can stay on premises. no sub leasing.

      1. Hard to prove unless I am inspecting regularly. That’s why some apartment complexes inspect every several months. Some apartments run out of parking spaces. Many have ample overflow lot space, depending on zoning and such, but have become overcrowded. The people stack up and sleep on the floor. Then look for work.

  5. The daily and weekly DJCI charts look very weak. Hg futures are at a 16 mo. low.

    Shorter term support for the commodity complex failing and looking weak today.

  6. The dollar collapsers and dollar crash parrots 🦜 🦜 🦜 🦜 🦜 are doing a foolish disservice to their followers as holding dollars right now is the best strategy. BTC and the cryptos look like garbage and stocks struggle against the tide. The only thing holding up SFRs are rising personal income (up 0.5% last month) and climbing rent roles from exploding open borders by Biden and Obama who are working together to destroy the small landlords.

    Cash is king.

    Dying dollar. Ha. What a bunch of fools….. Hurry up and get your rubles.

  7. Top economist Mohamed El-Erian says a Federal Reserve flip-flop could wreak havoc on the economy

    https://fortune.com/2022/06/29/top-economist-mohamed-el-erian-federal-reserve-flip-flop-wreak-havoc-economy-recession-stagflation/

    In a Wednesday Financial Times op-ed, El-Erian, who is president of Queens’ College, Cambridge, and an economic adviser to Allianz and Gramercy, said he fears the Fed will fall into the “stop-go” pattern of monetary policy that characterized the 1970s and 1980s and worsened economic growth and inflation challenges.

    “Stop-go” monetary policies lead the economy to swing between periods of rapid, unsustainable growth while interest rates are low, and then recessions when rates rise.

    El-Erian says moving back to this type of economic policy would be a misstep that would lead to dramatic consequences for the U.S. economy and ruin the central bank’s credibility.

  8. 5-Year Breakeven Inflation Rate

    https://fred.stlouisfed.org/series/T5YIE

    The breakeven inflation rate represents a measure of expected inflation derived from 5-Year Treasury Constant Maturity Securities (BC_5YEAR) and 5-Year Treasury Inflation-Indexed Constant Maturity Securities (TC_5YEAR). The latest value implies what market participants expect inflation to be in the next 5 years, on average.

      1. yep! All those people who think the $ is gonna die and we better hurry and buy Silver and gold are probably a little disappointed but not near as disappointed as those that bought silver at almost $50 in 2011.

    1. Friends who rent in Toronto are upset about this: https://toronto.citynews.ca/2022/06/29/ford-government-caps-rent-increases-2023/
      She can’t afford a house in Toronto, and rents are going up. I suggested moving out to the country but she ‘can’t’, giving me reasons she can’t leave. I don’t see them as very strong – I suppose most people stay where they are comfortable, or familiar, even if it’s bad for them. My school board in Toronto lost 4,000 students this year. Have these families moved out to where they can afford a house? This could be likely.

      1. My nephew was just kicked out of the National Guard because he refused the jabs.

        1. I’m surprised the military is going through with this. A lot of people are giving up some incredible pensions by getting kicked out. Makes you wonder what the state of our military will be in 5 years time.

        2. Chris,
          Maybe your nephew should consider Florida:
          https://newshourfirst.com/2022/06/25/gov-desantis-takes-a-big-step-to-protect-florida/

          Also, very sadly, Dr. Zelenko passed away today.
          https://americasfrontlinenews.com/post/dr-vladimir-zev-zelenko-passes-away

          He had an unusual and aggressive cancer.
          I’ll just leave it at that.

          For those that did or did not know of his unparalleled work, they might wish to visit his website (while it is still up) to download his protocols and other important writings.
          https://vladimirzelenkomd.com/

          God bless Dr. Vlad Zelenko

      2. America is still the place to be. If I grew up in Camada, I would have eventually made it down the states. Just the cost differences in RE alone would have motivated me. I left the NE as taxes, rules, and house prices were outrageous. Rents could not come close to covering expenses.

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