What do I do? Full-time independent stock market analyst and researcher:
Check the comparative stock list table on my Stock market research platform under curriculum preview!
I am also a book author:
Modern Value Investing book:
More about me and some written reports at the Sven Carlin blog:
Stock market for modern value investors Facebook Group:
We first have to ask ourselves what is going on in the world today: the answer is simple: Central banks have pushed so much liquidity into the system that everything looks great as technology plus huge investments thanks to low borrowing costs kept prices down.
This tells me two things, the world can continue as is or Central banks can lose control and we could see huge inflation. As I don’t have a crystal ball the best thing to do is to be hedged against such a situation in order to sleep well.
Something also very important to understand is that inflation is much more related to your personal finances than your portfolio. As we have seen in the Chapter 2 analysis of the intelligent investor, stocks don’t really offer immediate protection form inflation so we have to be protected from a personal standpoint.
Life and inflation
The average inflation rate in Europe was 1.72% over the last 20 years while the average in the U.S. was a bit higher where the cumulative inflation rate was 55%.
What is possible is that in the next 20 years we continue to have low inflation but it is also possible that we have high inflation. I don’t know what will happen but I like to be protected.
As I said inflation is about our personal finances, let’s look at who is protected and who isn’t….(read more)
HOW TO: Hedge Against Inflation
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
HOW TO INVEST IN SILVER: Silver IRA Investing
History shows central banks don't work but here we are trying it again total insanity.
If I increase my income by 6% every year does this mean I beat inflation because it is on average 3%?
I invest in food, dry beans, rice, and honey. You can't eat silver or gold.
Burn = no inflation
What about gold?
Its about that time the opportunity has come
So to protect against inflation you either take a loan, which is not a good idea now, or you buy gold, but maybe you lose money. Great advice
Nice background with 1913 to start with! Hmmm… what happened then?
Awesome advice! This time on real estate. Thanks again Sven.
How to survive the worldwide starvation crisis caused by Peak Oil;
"What can I do"?
According to the experts you should:
1. Garden with sustainable agriculture techniques (less pesticides and fertilizer (organic or better yet permaculture)).
2. Buy food and manufactured goods made locally
3. Pay down debt
4. Learn skills they will be useful in the future and make friends that have useful skills you don't have (related to providing food, water, shelter, and medical care. A necessary skill is organic/permaculture gardening/farming). Very important: medical plant and medical skills are the best way to ensure your survival. All others will gladly sacrifice their life to protect your life, so you are around to use your medical knowledge to keep their families alive.
5. I recommend to invest some money into technologies to increase the "carrying capacity" of the planet (high risk investments);
A. decrease environmental impact per capital
B. alternatives for our food system input to improve production
C. alternatives to our current living arrangements,
D. alternatives to our plastics industry,
E. alternatives to disaster capitalism
F. "Savior technologies", ie faster-than-light travel, "game changer" technologies, ie Cold fusion energy & "delaying technologies", ie deep drilling technologies.
6. I also recommend you inform and prepare your family, friends, and others. It is best to initially suggest people have an emergency kit… for any emergency such as flood, earthquake, tornado, hurricane, loss of electricity due to a winter storm. Then, if the friend or relative puts together a disaster kit, what I do is introduce Peak Oil (by telling them of the 43 second movie trailer http://m.natgeotv.com/ca/2210-thecollapse/videos/collapse-of-earth , the "National Geographic Collapse" movie on YouTube, & free book downloads;
7. For the truly motivated, a community based organization to mitigate Climate Change and Peak Oil is: http://www.transitionus.org/
(For non USA; https://transitionnetwork.org/)
Google "2052 free book summary download", &
The free book "Plan C" workbook download; http://www.communitysolution.org/newsolutionsreports/ne
w-solutions-11-plan-c-curtailment-and-community?rq=plan%20c
See the Facebook page: "National Geographic Collapse movie"
Thanks for another excellent video, Sven. Hope you are feeling better soon !
Buy from the pessimists and sell to the optimists!
Sven, checkout a youtuber called belangp. I think you'll find his analysis of PMs very intruiging.
In investing, just as in baseball,to put runs on the scorecard,one must watch the playing field,not the scoreboard – Warren Buffett. Thanks for the sharing Sven
Sven – Even with the flu, you're the best thing going on YouTube! I hope all your viewers realize how valuable these lessons are. There are so many garbage finance/stock channels out there and it amazes me seeing the number of views some get. Thank you Sven!!
BTW… I look forward to the next real estate opportunity. I wasn't quite ready in 2008, but I should be ready next time. Cheers…
Agree totally. What you must try to do is invest 5% – !0% of your income in stocks shares Government bonds. In the UK Government bonds are called Gilt Edge Securities. They are a way that you can buy an assett. With a fixed return. You can buy a Gilt that has a one year return up to a twenty five year return. Consoles is and i think is the longest UK Gilt fund in the UK.
Hi Sven, I hope you are feeling better.
I would like to request further discussion on the All Weather Portfolio. My goal is to have an All Weather style portfolio as a subset of my overall (now mostly cash) portfolio.
I am specifically having trouble with the quantitative aspect underlying risk parity. As I understand it, the All Weather Portfolio is meant to allocate an equal percentage of risk to various assets, while specifically including uncorrelated asset classes. I am planning to rebalance this portion of my portfolio once per year, but I am confused about how to accurately weigh/assign the risks of the various asset classes.
A simplified approach might be to define fixed percentages to allocate to each asset class, and rebalance each year to restore the relative percentages based on price changes. I have seen videos from Dalio or Tony Robbins alluding to an asset allocation of 55% US treasuries (40% long-term, 15% intermediate-term), 30% stocks, 7.5% each to commodities and gold. Can you please critique this asset allocation, especially considering a long-term perspective? Do you recommend a different approach?
Thanks very much for all of your helpful videos!
There have to come another opportunity for real estate. At least I hope so cause I didn't took advantage of the previous downturn.
I don’t believe inflation estimates. There is much more inflation in the system to counteract the massive productivity increases we’ve been experiencing.
Money expansion is like pouring honey into a jar-first the money goes into stocks, bonds, real estate… only then the price level rises in the whole economy. It needs to be said what the central banks are doing in the recent years is an unprecedented experiment and hyperinflation is a likely outcome of that experiment. People owning real assets will come out of it relatively untouched, inflation may be even their friend. People owning paper assets will make some use of them as a fireplace fuel 🙂
I bought my house with a fixed rate for 30 years. Before my pension it will be paid off. But at that point I would probably have no pension to speak off. So that's one reason for me to start investing.
Nevsun feasibility study today!
I think alot of people have become complacent when it comes to inflation. This generation has never really seen bad inflation during their investing lifetime.