January 29, 2012

Just a quick thought of mine...

Investing in this economy can be an intricate process given all of the confusing signals evident within the current global economy.  In an economy such as this, people try to pay off bad debts and increase savings as a means to "wait it out" before putting their capital back to work in the market again.  But this strategy seems to put the average citizen in a bad predicament because they actually lose money this way.

Why put your money in a savings account when the government is doing everything in its power to force you to not save but instead invest?  By lowering interest rates near zero, QE1, QE2, and secretly implementing QE3 - our Federal Reserve (which is privately owned by other banks) is devaluing the dollar's value.

So, therefore, we have an incentive to invest our money instead of saving it.

Well, if we're going to invest...and we should....it may be smart to put our money into commodities and other tangible assets.  With virtually every central bank around the globe creating money out of thin air - eventually there's going to be too much money chasing not enough assets.  This creates supply and demand imbalances - which creates opportunities for us who will be ready to take advantage of these opportunities.  It might be beneficial to diversify our money into physical silver, gold, agriculture, REITs, and ETFs that invest in a basket of commodities - because these investments will help give us a profitable portfolio in the long-term.  Just by investing in REITs alone (which are Real Estate Investment Trusts), I earn close to 15-20% return on my money via dividends.  This is a lot better than putting all of my money into a savings or money market account that earns a miniscule 1% or 2%.

These are some of the investments I like and invest in little by little.  Eventually, this strategy will help us to preserve our capital and avoid the capital eroding policies created by the government.

BE FREE 

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