Safe Haven | Preservation of Capital |
At some point in your life you will want to, or be forced to consider an investment program. The main criteria in choosing one that is right for you is summed up in three words "Preservation of Capital". Sounds pretty simple doesn't it? Remember, "Investing is not Saving"! The mainstream media would lead us to believe otherwise and seldom comment on the risks inherent in equity ownership or debt investments. They are quick to point out the positive aspects of every news event with prepared soundbites of information. They provide simple, continual commentary on the respective markets to show they are up to date with the latest developments. They don't comment on developing trends until the trend is obvious to everyone; acting as cheerleaders for the greatest bull market of the twentieth century. A cautious and more reasoned approach is needed.
We are not permabears, nor are we bullish for the foreseeable future. The Stock Market Bubble is not our greatest concern. The Credit Bubble, however, when it inevitably implodes, will wreak havoc on all sectors of the World Economy, including the Stock Market.
The articles from GoldenBar and PrudentBear are all a must read. As a starter, we suggest you read On the Manipulation of Money and Credit by Doug Noland of Prudent Bear and Inflation versus Deflation by Ed Bugos of GoldenBar. These articles help towards an understanding of the Bubble and monetary inflation. GoldenBar articles are published bi-weekly, and PrudentBear is published Wednesday and Friday evenings. Please visit their web sites.
- Alexa: SafeHaven.com