Submitted by Charles Hugh-Smith of OfTwoMinds blog,
The key take-away: focus on owning income-producing assets, not a primary residence.
One truism of investing is to follow the lead of those who are building wealth. This chart reveals the foundation of the wealth of the top 1% and the next 9%; business equity, i.e. ownership of enterprises. Compare the assets boxed in red:
On October 16, 2015, I warned that the banking industry was entering a strong cyclical AND structural downturn. See the full explanation below...
This is a chart showing the how well that warning has panned out thus far...
This is the best quarterly performance for Gold in 30 years...
And as Mike Krieger of Liberty Blitzkrieg blog details, physical demand is soaring...
The global Central Banks have declared War on Cash.
Historically, one of the safest things to do when the markets begin to collapse is to move a significant portion of your holdings to cash. As the old adage says, during times of deflation, “cash is king.”
The notion here is that cash is a safe haven. And while earning 1-2% in interest doesn’t do much in terms of growing your wealth, it sure beats losing 20%+ by holding on to stocks or bonds during their respective bear markets
It was just last week when we said that Cushing may be about to overflow in the face of an acute crude oil supply glut.