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Investment Analysis Clubs / Macro Economic Trends and Risks


Subject:  Re: Portfolio Strategy in a Global Down Draft Date:  9/15/2008  8:38 PM
Author:  kentm401 Number:  252148 of 537066

I don't think you need to do that WTH for exactly the reasons you state.....tho, my way may be just as obtuse.....

If the Fed floods the banks with cheap money (essentially "printing money"), the value of the dollar can decline, eating into your nest egg.
I'm not knowledgeable enough about investing in foreign currencies to make a big swing in that direction and I have as little faith in the soundness of financial reporting

I prefer to hedge the currency risks by indirect investments in "dirt&grease" companies producing commodities, and direct investment in PM's [either the miners or the physical]. The goal for me being to hedge against my own currency via a commodity with a supply demand pattern that I both understand and is somewhat "predictable. Add to this approach a desire [big time] for high yield divi's distributions and you get a pretty good hedge without much risk especially when commodities are under stress like the rest of the markets currently.


That's the way I do it. I'll not get into any specifics tho I do use CEF and GLD for direct physical metals hedges apart from direct ownership....for the rest [companies], anything I'd say would sound to much like a pump&dump scheme and that ain't me.

Good trading...and don't be afraid to experiment a bit. Just keep it small scale.

KBM (grease&dirt been verdy good to me)
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