Why You Should Not Rely on Mainstream Media for Investment Advice

I am currently reading a great investment book by Jesse C Stine.  With every new page, I am starting to realize the mainstream media is not the one-stop center of investing.  I have a few ideas about why this is the case.

Mainstream financial media outlets are news based.  Think about your local newspaper.  The news is a business and must sell papers to stay in the black.  If the owner of the newspaper is not selling copies, he will be out of business in no time.  Financial shows must be marketable to the public to stay on television.

Furthermore, the stories on television may not be entirely true.  Ratings matter and the producers of the financial shows are watching to see what sells.  Think about television reality shows for a moment.  In the beginning, reality shows were only on a few networks.  Now many television networks are airing different versions of the television format to draw viewers.  Reality shows are popular because people love watching them.  I think the same holds true for mainstream financial media.  Once again, what sells controls what is on television.

In addition, one must also be mindful of this when he or she selects investment books because the same thing holds true here.  A lot investment books on the market have a lot of hype and outdated investment information. Be very careful and examine the quality of information before making any decisions.  If someone is going to the dentist for a root canal, I know that person will want a dentist who has experience with the procedure.   It helps to read books by authors who are able to show and demonstrate how they have been successful with their investment strategies.

In conclusion, I know we all love to watch financial shows. However, we must realize that we cannot rely solely on the advice given on television.  We must do research and partner with an experienced financial planner to develop a sound investing strategy.  I will talk more in detail about this groundbreaking investing book when I am finished reading it.

Read more »

US Debt Growing 28 Times Faster Than US Growth Economic Collapse

The other day,  I saw something that made me take notice.  It was a commercial that stated the US Debt is growing 28 times faster than its growth.  This is going to create a big problem very soon.    According to the US Debt Calculator, the US Debt today is $16,897,858,750,170.  This amount breaks down to about $53,446 per person.  I do not see how we can continue to go on this way.

Even if America's Economic outlook is bleak, I honestly believe we can turn this  around.  We can become a nation of prosperity instead of a nation of debt.  Some say that other countries are watching the United States, and they are secretly making plans to abandon the dollar.  However, no one wants to face this reality.  It is like the large elephant in the living room that no one seems to notice.

We need to have an open dialogue about the growing US Debt and discuss ways we can lower this.     The US Debt grows bigger and bigger with each new day.     We cannot go on this way.

To see the US Debt grow in real time, please visit usdebtclock.org

Read more »

How to Remain Positive During an Economic Collapse

I have been reading about so many negative things going on with the US Economy.  The possibility of a stock market crash and an economic meltdown are very great. Each day, I hear about something else that points in this direction.  Just the other day, I heard  that some countries are abandoning the US Dollar and refusing to trade using greenbacks.  Gold and silver prices are dropping all the time.  Something could happen.  I feel it in the air.

Nevertheless, keep the faith and have hope.  We can survive and even thrive through an economic collapse.  Many people became wealthy during The Great Depression of the 1930s.  There were even some instances where people became multi millionaires.  Some examples include oil tycoon J Paul Getty, King Cullen grocer Micheal Cullen, aviator Howard Hughes, Camelot Patriarch Joe Kennedy Sr, and Monopoly game inventor Charles Darrow. Apparently, these people found a creative way to thrive during The Depression.

I believe it is all in how we perceive things.  We can view an issue as completely negative, or we can view it a different way.   See the silver lining in the storm clouds.  Remove the shadows of negativity from the mind and turn on the lights of positive thinking.   If an investor can keep a positive frame of mind, he or she can see the golden nuggets of fortune scattered in the sands of economic woe. However if the investor remains depressed, he or she will never see the hidden opportunities.  No matter what the economy is, there will always be a way to make money.  I am 100% certain of that.

Read more »

The Farmer's Market Can be a Lifeline During an Economic Crisis

In the United States, we largely have access to food by way of International Food Markets.  Farmers grow food and sell their produce to investors.  These investors then put the produce on the open market. Then the food gets distributed to the supermarkets.  This is a pretty good idea for people who have money to buy food.  However, if a person has no resources then he or she would not be able to get any food.  In addition, this system can leave an entire population open to starvation if there is an economic collapse or breakdown of the monetary structure.

Many years ago, Americans needed local farmers to grow and produce food.  Remember the country store?  In the 1920s, several investors experimented with the idea of grocery stores.  By the 1950s, they were a common fixture especially in the cities.  As time went on, grocery store chain owners started to expand into more rural areas.

 During The Great Depression of the 1930s, people in the country who could grow their own food were able to escape hunger and starvation. City dwellers were not as fortunate.  I used to overhear my Grandmother talking about how hard things were during this time.  She lived in the city and starvation was a common occurrence there.

In the event of an economic collapse in the United States, we could easily experience the same poverty endured by many third world nations.  One way to prepare for an economic disaster is to become familiar with the farmer's markets in the area.  Check your yellow pages and find out where these centers are because they can become lifelines during a severe economic depression.

Please watch the video below, the price of food is going up every week.

Read more »

What are Derivatives?

What are derivatives?  Simply put, derivatives are insurance that helps  a person minimize his or her risk in an investment.  For example, if I was a potato farmer and I wanted to protect my earnings for the next year, I could purchase a derivative.  Let us say I want to ensure that I get a least $15.00 for each bushel of potatoes. Since it is hard to predict the future, I do not know what will happen on the market.  I visit a derivatives broker firm, purchase a derivative, and enter into an agreement with the buying party or the investor.  No matter what happens, I will still get my $15 a bushel for my potatoes.

The investor then takes the bushel of potatoes that he paid me the $15 for and puts them on the open market for $25 a bushel.  He makes $10 from each bushel.  This is a good thing when things are going good.  However, what if something happens in the market that lowers the price of the potato?  The investor must still give me the $15 in any case.  However, most of the time the investors have a stop-loss clause agreement with their brokers.  This helps to minimize the financial loss to a certain percentage.

Like I was saying before, this is excellent when things are going great. However, derivatives must be monitored and regulated or things can get out of hand quickly with disastrous consequences.  If people are not doing what they should be doing, the this process can affect the US Economy in a negative way.  It is easy to see how a few ripples in the derivatives market can cause an economic tsunami in the United States.

Read more »

The US National Debt Can Cause an Economic Collapse

How will a possible economic collapse affect people living in the United States?

Hopefully we will never experience an economic collapse in the United States.  However, we must be practical.  I have seen several recessions in my lifetime.  My grandparents lived through the depression.  My mother and I waited in gas lines in the 1970s during the oil crisis.  I remember watching the stock market crash of 1987 on television.  I saw the housing bust of 2008.  I know for a fact things can get bad pretty fast.  Economics is something that effects us in profound ways.  We must analyze financial trends and plan for the future.

The national debt is so high right now until it is outrageous.  As of June 2013, it is $16,737,246,099,998!  I do not know about anyone else, but I simply cannot imagine that amount of money.  It is unfathomable to most.  How will we as a country ever pay this off somehow?  We can not go on this way without something happening.

If you are reading this, please take some time to prepare for the possibility of economic collapse here in the United States.  Stock up on food, water, and medicine.  If the banks fail and stores are empty have food in your house.  Do not be caught outside among thieves and thugs.  The possibility of civil unrest during this time is great.  If people are freaking out about not having access to money and food, the streets will be a dangerous place and the government will have to restore law and order somehow.

It may be a good idea to invest in gold or silver at this time.  Today, June 25, 2013, gold is $1263 an ounce and silver is $19.35 an ounce.  Some have said they expect the price of these precious commodities to drop even lower.  If this happens, use this as an opportunity to increase the investment.  If the dollar fails,  I am sure gold and silver will be the currency of choice.

Take time to prepare for a possible collapse of the stock market.  Get with a qualified investment advisor and ask him or her to help you prepare a survival financial strategy.  Please consider there might not be a bailout this time as it was in 2008.  Prepare for the worse and pray for the best.

Read more »

After the US Dollar Collapses!

This movie is fiction but just imagine if it happens.  What would we do?   Some will be panicking on that day.  This can really happen.  The decline of the dollar will be a global event that will go down in history.  We all live in separate countries, but we are all in this together.  If this happens, we will have to work together regardless of color or creed.  This is all pointing to the rumors that I have heard about other countries around the world backing away from the dollar. In this fictional movie, gold bullion went up to $4053 per ounce and silver bullion went to $173 an ounce.

Read more »

Prepare for a Potential Economic Collapse by Investing in Silver Bullion

Once regarded as the forgotten commodity, silver can be a wonderful investment opportunity. However, silver bullion can help protect a portfolio in the event an economic collapse.  If it gets right down to it, a person can trade silver coins for the necessities of life like food, water, medicine, and clothing.

As of June 24, 2013, silver is about $30 an ounce.  This is extremely affordable even for people who do not make a lot of money.  If we experience an economic collapse, I am quite sure the price of silver will skyrocket.  If one has wisely invested in this commodity, he or she could easily make a fortune under the right circumstances.

I have heard rumors that countries around the world are sneaking away from the dollar.  In some cases, some countries are even refusing to accept the US Dollar.  Call me suspicious, but I feel something is going to happen.  Perhaps investing in silver may be a great backup plan if the dollar fails. If one desires to invest in silver, he or she may want to consult a qualified investment broker and develop a suitable investment strategy for the commodity.

Read more »

The Remonetization of Gold

Once again, here we are talking about gold as currency.  Many economists have predicted this would happen.  I just wonder what things will be like if gold returns as currency.

Read more »