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Varchild2008 (84.02)

How to deal with a Commodity Crisis



October 23, 2009 – Comments (0) | RELATED TICKERS: WHR , F , SVA

Not just oil prices... but all commodities soaring and soaring to extreme levels of OH MY GOD!

Copper?  Say it goes up another 500% from today's price
Oil?   Let's add +$100 per barrel
Wheat/Corn?  Up 250% from today's price
GOLD?  $2,000 an once.
Platinum?  $4,500 an once.

Ad Nauseum.... Commodity Crisis all over the place....

How do you prepare ones portfolio full of commodity sensitive stocks for this disaster?

Well.... I think the best approach is to DO NOTHING.  At least in terms of Equities.....

You must first take the Hitchhiker's Guide to the Galaxy advice, "DON'T PANIC!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

After you calm yourself down....Step 2?  Tap the Currency Market immediately..... and start converting your own Savings Account Cash to other Currencies....

In fact... One should not sit around waiting for a Commodities Crisis.  One should start holding a Foreign Currency Driven Savings Account or CD Account today. 

What Currency?  I highly recommend the CHINESE Yuan <-----    Or if you don't like that thought then I recommend looking for a CONSERVATIVE BASTION Country and buying the currency..

Hmm.. You could go and grab Germany's Currency as a Bullish Play that Germany will Turn their economy around, generate growth, improve the value of their currency, due to the Conservatives taking control of the Legislature and Executive Branches of their style of Government.

Hey... it's just advice..... So... Do the research and if you discover that I am RIGHT ON in my thoughts here.... then go for it... 10% conversion of your American Dollars into Foreign Ones is probably enough.... Any more would be ludicrous.  10% is good... Thank me later:-) (especially once we see:

EUR/USA   1.55   <-------The point of no return for the U.S. Dollar

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