Investing Against The Masses

There is a quiet storm brewing in the United States. One that can either rain riches down on you or sweep your wealth away. Most folks don’t have a clue what is coming down the pipeline, but you can be different. You can make strategies to profit from the massive herd mentality of most investors.

When the 2008 subprime mortgage crisis hit, it was a giant wake up call for Americans. Realtors who had constantly pumped the idea of housing never falling in value had to eat their own words. There was a sudden psychological shock in the mind of most Americans. People started to fear for their jobs and their homes. Most people watched helplessly as trillions of dollars in investments suddenly vanished. 401ks were halved or worse. This left people wondering what was next.

Then the Fed, Treasury, and the banks got together to figure out how much money they could take from the already hurting American populace. And then, once again, millions of Americans watched helplessly as their tax dollars went to bailouts. But the Fed wasn’t done there. They knew that the housing market was going to tank further. So, they started their quantitative easing program that continues to erode the value of the dollar. I know, sounds depressing. And really, it can be.

Going forward, most investors tend to invest the same they have in the past. This would be a colossal mistake in today’s environment. Unfortunately, most Americans are doing the same old “set it and forget it” approach. There are many reasons that this is a fatal mistake. First, America is entering into a time of strong inflation. The savings of millions of Americans are going to be crushed by that type of inflation. The government and the Fed are going to effectively punish folks for saving. Next, resources of all kinds are going to become much more expensive. And, at the same time, we will (and really are) having deflation in other things like housing. Lastly, and most importantly, our continued devaluation of the dollar is going to lead to very real currency problems.

Most of us have never seen these kinds of problems. That’s why most of the old rules for investing should be thrown out the window or completely reevaluated. Increases in the stock market should be evaluated with an eye of skepticism. Really, anything dominated in USD should be evaluated in other ways. That’s because devaluation of the dollar can produce fake increases. So, if you can’t invest in the stock market and you don’t want to be in savings, what can you do?

Investors must absolutely take control of their investing. They need to know how it works and what to invest in. Investors need to get educated. I realize most people will not do this. Hence the title of the article. But for those who do, they can reap some incredible benefits. Fixed costs are going to do very well. Things like real estate where you are borrowing a fixed cost over a long time will crush. This is especially true if you can rent, residential or commercial. Obviously, the residential market still needs time to unwind, but I think you can understand what I mean. Commodities are going to do well. Energy will become more expensive. And investors need to watch very closely how the USD unravels. It’s my belief that it will. As that occurs, two crucial items are going to come into play: USD as world reserve currency, and USD as oil trade currency. If those two go south, then the US is going to be in a massive world of hurt.

Don’t be like the sheeple around you. Get educated. Look at things critically. Turn off the major news outlets and start your own investigating. I think you will be very surprised at what you find.

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