JIM RICKARDS: Protecting Yourself From Worldwide Inflation

From thedailyreckoning.com:


Protecting Yourself From Worldwide Inflation

By James Rickards

No one has to be a victim of the global elite plan. You just have to see it coming. You preserve wealth by getting out of the way of certain developments. You increase wealth by getting out in front of other developments.

As always, timing is critical. It’s important to stay focused and be nimble.

Many of the short-run trends are the exact opposite of the long-run forces.

Stocks may perform well in the short run as central banks maintain their easy money stance. Once inflation takes off, that tends to be a disastrous environment for stocks because inflation hurts capital formation and new investment.

Cash is another good short-term asset because it fights deflation, reduces volatility, and gives you optionality to pivot into other asset classes when the timing of the elite plan becomes more clear. Yet cash will be a bad long-term choice because it suffers the most in inflation. In extreme cases, cash can become worthless.

Bonds are just a more volatile form of cash, with a higher yield. Again, bonds are a good short-term play (because of deflation fears) and a bad long-term bet (because inflation is just a matter of time)…

..Gold is the ultimate all-weather play. As shown in this article, gold does well in inflation and in deflation (because government itself will bid up the price)…


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Also check out Jim Rickards on Twitter: @JamesGRickards



2 thoughts on “JIM RICKARDS: Protecting Yourself From Worldwide Inflation

    1. Absolutely. I do feel that the dollar is likely to strengthen in the short-medium term as people around the world will continue to rush into dollars as a safe haven as global turmoil continues… however I feel like it is too risky to hold a large sum of dollars. There are many other safe haven assets that I think will fare better anyways. Thanks for the comment Finance Solver!


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