Twitter   RSS   Email  
 
Home
Admin

 How the Global Economy is Dependent on Christianity


 Why America May Never Recover From the Recession


 Save Money Homeschooling


Author of Rich Dad Poor Dad, Robert Kiyosaki’s Investment Strategy for 2010 is the Same As Mine

By: Steve Johnson

2/25/2010 - 36 Comments

Several months ago, I wrote an article about my investment strategy for 2010.

In the article, I explain how I plan to double my money twice this year even as the stock market collapses.

My strategy was to short the market during the crash, which will also pull down the prices of precious metals. Then after the crash I will move back into gold mining stocks and enjoy the rebound.

If everything goes as planned, I would double my money during the stock market crash and then double my money again when the prices of gold rebound. 

Yesterday, Robert Kiyosaki posted and article on his yahoo personal finance blog in which he basically said the same thing that I have been saying.

Here is a quote;

“If the dead cat bounce dies and the Dow drops to 5,000 in 2010, as I predict, then the price of gold and silver may die with the dead cat of the Dow, as investors cling to cash. The next question you need to answer is, “If the Dow dies and the price of gold and silver drop, what should you invest in at the bottom…stocks, gold and silver, or cash?”“

The only difference is that I don’t think the Dow will drop below 5500, which is key because you need to know when to sell your short of the Dow.  If you sell to soon, you could lose the money that you made and if you wait too long you could miss the rebound in gold.

After six months of watching the market and the governments monetary policies failures, I am even more convinced of this investment strategy than I was when I first wrote about it.

My 401k

The only problem is my 401k, which I also recently wrote about.  My 401k money is trapped.  There is no option to short the market or move to cash. 

I cannot short the market and I cannot sell my natural resources mutual fund (which contains previous metals and oil) because I don’t have any other options that are not going to drop with a stock market collapse.

I cannot move to foreign stocks because when the market sinks, all domestic and international stocks will also drop.  And I cannot move to bonds because China and the rest of the world will continue to sell US bonds. 

I'm afraid my best option is to stay in natural resources and ride the market down and then back up again. The longer the market crash is delayed, the closer we move to hyperinflation which will drive up the prices of natural resources. 

So the longer the market crash is delayed, the higher that natural resources are going to increase after the market crash.  

The price of oil could easily double its current price shortly after a market crash and a sell off of the dollar, therefore I could still enjoy doubling my money once by staying invested in natural resources.

Copyright © 2018 PennyJobs.com. All rights reserved.

How Capitalism Saved America

This book is an excellent presentation on the problems of government 'regulations' into free market mechanisms. This book illustrates simply and clearly how many chaotic economic problems were caused by interference from government regulations and how capitalism has overcome them. Master this book and you have overcome most of the bad economic thinking of our time. Government is the cause of capitalism failure.

Meltdown: A Free-Market Look at Why the Stock Market Collapsed, the Economy Tanked, and Government Bailouts Will Make Things Worse

In discussions of today's economic meltdown and what to do about it, the Federal Reserve is a stealth helicopter: it never shows up on the radar. With the exception of a few esoteric specialists and those Ron Paul Revolutionaries who burst into chants of "Abolish the Fed!" Historian Thomas Woods notes in this important book, the Federal Reserve bears a large part of the blame for the mess we're in. In the first part of "Meltdown," Woods shows how both in theory and in practice, Fed policy fueled an artificial boom and is now leading us to a much larger meltdown.

Crash Proof

Peter Schiff has predicted the economic hardship more accurately then any other economist in the world in this book. Everything from the housing crash to the credit crunch to the stock market. Peter has a plan to help you servive the crash. Peter explains why the Wall Street investment firms are still trying to sell you stocks, and was the house prices are likely to continue to decline for years to come.

The Coming Economic Earth Quake

Larry Burkett explains how the financial troubles in America started back in the 1930s. Larry explains the economics of huge goverment and public deficits and how it leads to hyper-inflation. We may be headed for another great depression.