| By Tom Dyson, Editor, Postcards From the Fringe If you’ve been reading my recent essays, you’ll know that I’ve been promoting a simple exchange: Sell stocks, buy gold. Now, keep in mind that we’re not buying gold as an investment. We’re simply lightening up on passive stock market investments like ETFs, robo-index funds, mutual funds, stock ETFs, and buy-and-hold stock market strategies… …and moving to the sidelines (in gold) until stocks get cheap enough for us to buy them again. In other words, we are using gold primarily as money – a safe haven – and not as a speculation on higher gold prices. This is why I’ve put the bulk of my money into physical gold. It’s a way to keep us safe while the investment markets correct. | Recommended Link | EMERGENCY BRIEFING Tonight, Tom Dyson and Bill Bonner are holding an Emergency Investment Summit. They'll answer one of the most popular questions right now: Where is the market going next this year, and how bad could things get? One thing you should know right now: Forget about regular stocks. During their free event tonight, they'll cover: The #1 place to put your money today. And why one expert (who warned about the crash of 2020) says it could make you 10 times your money. Plus… They'll be joined by a very special guest: The leader of an underground research firm that predicted 9/11… the dot-com meltdown… and more. | | | -- | Primary TrendThis chart shows what I’m talking about. It shows stocks (specifically the Dow Jones Industrial Average) priced in gold.  As you can see, the primary trend in the stock market has been DOWN since October 2018, when it peaked at around 22. It’s currently around 14. And it’s on its way back down to below 5. By owning gold, we set ourselves up to buy stocks at some point in the next five to 10 years at much lower valuations than they are at today. And as such, the only thing that matters is how gold performs relative to stocks. Its nominal price of $1,700 – or whatever it is today – is irrelevant. So if you’re worried that you’ve missed the boat, keep in mind that this trend still has a long way to go. So for the moment, I have the bulk of my portfolio in physical gold. My strategy does involve other plays, in smaller amounts. All in all, I’ve invested nearly $1 million in this strategy. But here’s the rest of my plan… Corporate Aristocrats When the Dow-to-Gold ratio reaches 5 – what Bill Bonner calls its “rendezvous with destiny” – I will sell my gold and buy what I call “corporate aristocrats.” These are companies with decades-long track records of relentlessly raising their dividends. There are no better passive investments than stocks like these. You get rich twice this way. Once from the rising dividends and then, from the compounding effect of reinvesting dividends. There is no better way to grow wealth. But until it’s time to buy these corporate aristocrats, I’m sitting on the sidelines in gold, where I will remain until stocks are ready to beat gold again. | Recommended Link | | Man who warned of 2020 Crash issues new prediction Tonight, the man who warned about the 2020 crash will issue his biggest new prediction since 2019. He famously wrote, "Expect a bearish meltdown" back on May 29th, 2019. He explained why stocks were a terrible investment… and why he was putting his life savings into a trade some said he was foolish to consider. Sure enough, the Crash of 2020 came along. He's now up $200,000, with the biggest gains still to come. He expects to make millions altogether, by doing something you've probably never seen before. | | | -- | Timing the Trade And I’ll know the time is right by keeping an eye on the Dow-to-Gold ratio. Then, I will resume my long-term “corporate aristocrat” compounding strategy. If I’m right about this – and if I time my zigzag correctly – my family will never have to worry about money again. Regards, Tom Dyson, Editor, Postcards From the Fringe P.S. It’s not too late for you to get on the right side of the primary trend, too. Tonight at 8 p.m. ET, I’ll show you why this could be the most important decision you make with your money over the next 10 to 20 years. If you’re interested in learning more, sign up now to save your spot for my special briefing right here. Like what you’re reading? Send your thoughts to feedback@rogueeconomics.com. Get Instant Access Click to read these free reports and automatically sign up for daily research. |
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