Dear FutureMoneyTrends.com Subscriber,
Starting today I plan to write a weekly digest on Wednesdays. Today’s will be rather short due to several interviews I have scheduled, but my goal is to give you my thoughts on the week as well as answer questions that have been coming into our Trendalerts@FutureMoneyTrends.com email.
Cyprus, as I said earlier this week, this is absolute tyranny, it is clearly theft to all. However because it is the government, most will just learn to accept it as “legal” under the cover of the government who has to take care of a crisis and some will have to forfeit their wealth for the common good.
This type of thinking is the very thing that has put us all in the mess we are in today. Where governments have taken over the most minuscule decisions in our lives and property, here in California you are legally supposed to get a permit just to switch out your toilet.
If you want to actually touch your dirt, forget about it, you will definitely need the government’s permission to add a pool, room addition, or in some cities, a flag pole. You have to start wondering whose property is it really, most rent from the bank (mortgage) and even if you don’t owe the bank money, the government demands property taxes for life.
With it being tax time here in the U.S., I really wish more people thought about why they allow the government to steal from them. Unlike the theft going on in Cyprus’s savings accounts, we currently live under a government that doesn’t even allow the money to hit our savings account, for most the money is stolen right out of their paychecks, so where is the outrage?
The Dow Jones continues to make new highs and I expect this to continue. In fact, with the world central banks now all in a currency war where whoever devalues the most wins, I believe that we will see Dow 20,000, 25,000, and possibly 30,000 over the next 3 to 5 years.
Interest rates will remain low and aging baby boomers will be forced to look to stocks, mainly dividend paying ones to help them prepare for retirement. This boom is mainly being built on air, so this will not end well in my opinion.
The U.S. is in an economic depression, the $10 an hour job recovery is mainly built on skewed data that ignores the 20% of working age adults who have either given up, settled for a part time job, or have gone back to school to double down college.
I have no doubt that the FED will kill the dollar, but between now and then the dollar could actually hold up well verses other currencies, so don’t be surprised if you see a move up in the dollar index in 2013.
Gold and silver continue to see an increase in physical accumulation. China for example, purchased 25% of all gold production last year! I’m a happy buyer at these levels, we are now buying all the precious metals for around the cost it takes to continue producing them.
Questions and Answers
Dan, I’ve been a long time subscriber going all the way back to your VisionVictory YouTube days, I noticed in the past 2 years you have become increasingly bullish on stocks, do you still think a crash is coming?
In 2007 and 2008 I was certain of a crash and was proven right, but in 2009 I thought we would see another leg down as well, but we didn’t because of quantitative easing and extreme mergers between the government and large banks.
I still believe a crash is possible, but not until interest rates get out of control, and right now I don’t see that happening. We also have all the central banks now devaluing their currencies, so I think you can actually find safety in owning some stocks.
Now I don’t own any U.S. consumer related companies, but I do own a few companies that have been around for over 100 years as well as two junior gold companies that I know the management teams well. So to answer your question, I do see the potential of a crash because this rally in stocks is based mostly on easy money and world currency devaluation, but I see this going on for a very long time.
My current thought is that the Dow is headed to 30,000 in the next 3-5 years. I plan to protect myself from the enemy and profit by owning companies that are never going away as well as staking a claim in well managed precious metal companies.
End Question and Answers
This is all I have time for today, if you have the chance, check out these two articles. One is on why the dollar could be headed higher, http://www.zerohedge.com/news/2013-03-27/guest-post-tailwinds-pushing-us-dollar-higher, and the second one about gold stocks being the single best value in the market today,http://www.stansberryresearch.com/dailywealth/2359/gold-stocks-rally.