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Mises Financial - Getting Into Stocks, Gold, The Coming Depression-

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I think EPC invests outside the eurozone - Asia and Eastern Europe which are probably OK. Though to be honest I really don't know, I'm not an expert. All I know is that Europe did not do anything better in the economic sense than the US so why would the Euro stay up. The reason I think it will be worse that the US financial system is based on the fiat while the Eurozone is on the bluff of a fiat and I just can't think of any reasons why would that work better.

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Kent C replied on Fri, Mar 21 2008 9:55 PM

 Did a little experiement.  Took gold prices from 1975 to present and ran them through the CPI inflation calculator to 2008.  It pretty much consistently placed gold at between $500-$700.  The Bank of Canada places it between $300-$500.  Analysis?

http://data.bls.gov/cgi-bin/cpicalc.pl

http://www.bankofcanada.ca/en/rates/inflation_calc.html

 

Shouldn't gold show up at its present $900+US  an oz?

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jbar replied on Fri, Mar 21 2008 10:53 PM

The Euro stays up and the dollar sinks because the present U.S. administration has spent more through DEFICT FINANCING than all previous administrations in this country combined. This can only get worse, as despite anything politicians say the geopolitical situation will not change, and  more expensive social programs are inevitable. Gold is risky, as a hedge against the falling dollar, because in a deflationary environment gold will fall along with all other assets. International bond funds, of countries with hard currencys, are my preference. IMHO these bonds will fall only if interest rates rise  and not if the gold backing the currencys involved falls in value. Additionally, central banks are well known to suddenly sell millions of ounces of gold without warning, causing the price to collapse.

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Dynamix replied on Sat, Mar 22 2008 11:10 PM

 

jbar:

International bond funds, of countries with hard currencys, are my preference.

 

Countries such as...? 

"Melody is a form of remembrance. It must have a quality of inevitability in our ears." - Gian Carlo Menotti

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Hey I wanted to give some real info here.  I listen to Schiff all the time and think he speaks the truth on the big picture economic matters.

HOWEVER .. I talked a relative into getting a Europac account opened up at beginning of this year and he is DOWN 18% since January.  Boy do I feel like a heel as this relative is near retirement age.  So just because Schiff knows the big picture doesn't mean he is making good decisions at the investment level.  So please be careful, I don't have any great investment insight but be aware that people are losing in Europac.  In fact Schiff sent a video email out not too long ago addressing recent losses.

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misesfanpdx:

Hey I wanted to give some real info here.  I listen to Schiff all the time and think he speaks the truth on the big picture economic matters.

HOWEVER .. I talked a relative into getting a Europac account opened up at beginning of this year and he is DOWN 18% since January.  Boy do I feel like a heel as this relative is near retirement age.  So just because Schiff knows the big picture doesn't mean he is making good decisions at the investment level.  So please be careful, I don't have any great investment insight but be aware that people are losing in Europac.  In fact Schiff sent a video email out not too long ago addressing recent losses.

 

 

Thanks for the info. I've been thinking of opening an account with EuroPac. It's something to consider. Isn't the US stock market down around 15% since October though?

 

Yours in liberty,
Geoffrey Allan Plauche
Doctoral Candidate
Political Science
Louisiana State University

"Quis custodiet ipsos custodes?"
(Who watches the watchmen?)
-Juvenal, Satires VI.347

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yeah the US stock market is probably down 15% but the whole purpose is to beat the US market and stay safe in other countries when investing w/ Europac.  He would have done a ton better selling off his US stocks and putting them into European currency!

My relative lost mostly in mining stocks that were recommended even after he said he wanted conservative style investments to the broker.  Different brokers, different recommendations.  But don't think Europac is a big safe harbor.  Schiff is definitely very good at recognizing the state of the US economy but in my relative's case it didn't translate to any wealth preservation but rather loss.

 

 

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misesfanpdx:

yeah the US stock market is probably down 15% but the whole purpose is to beat the US market and stay safe in other countries when investing w/ Europac.  He would have done a ton better selling off his US stocks and putting them into European currency!

My relative lost mostly in mining stocks that were recommended even after he said he wanted conservative style investments to the broker.  Different brokers, different recommendations.  But don't think Europac is a big safe harbor.  Schiff is definitely very good at recognizing the state of the US economy but in my relative's case it didn't translate to any wealth preservation but rather loss.

 

 

Morningstar explains the recent hard hit on international funds:

http://news.morningstar.com/articlenet/article.aspx?id=232131

http://news.morningstar.com/articlenet/article.aspx?id=231437 

Yours in liberty,
Geoffrey Allan Plauche
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Political Science
Louisiana State University

"Quis custodiet ipsos custodes?"
(Who watches the watchmen?)
-Juvenal, Satires VI.347

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What about investing in coal? At the current oil prices I think the Fischer-Tropsch plants will become a distinct possibility and that will drive the demand up... http://en.wikipedia.org/wiki/Fischer-Tropsch_process 

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Katee replied on Thu, Mar 27 2008 8:52 PM

1. DO NOT JUST DO IT. Stocks are not nike. If you don't know what you are doing you can lose a lot of money. My advice is grab a few books, or get someone to manage your account for you. If you have friends who do any trading (either for a living or for fun) I suggest you ask them. Don't listen to the nay-sayers I am still making money, granted not as much but my divs are still impressive. This is a great opportunity for bargain buys. I just picked up some very nice large-cap stocks for basement prices. 

 

2.  Depending on where you live you can call any full service broker. If you want to trade on the internet, Buyer beware. Its filled with hidden fees, and you are usually still stuck paying some guy commission.

 

3. I don't buy gold, but I usually avoid commodies cause the risk is to high.  

 

4. LoL. Dont' be silly. First I would sit down and figure out EXACTLY how much money you can afford to invest. I would say about 10k is a good round number to start with.

Low risk= CDs/Treasury bills and some other types of long-term bonds.Large-cap stock are usually pretty low risk, stuff like Coca-Cola, Pepsi, I dunno whatever major brands you can think of pretty much. I would also do some research into these companies before you buy into them, most services like Yahoo, TD, Scott, Fool, etc have nice research tools for investors. 

Med to high risk = Mutual Funds (especially now)  Theses funds all have different goals and objectives, make sure its what you're looking for before you invest.

High risk =  Small cap stocks, high yield bonds, options, commodies (energy, food etc). Foreign markets/ emerging markets. 

 

If you stick to lower risk, long-term, you should see a sizable increase in your savings. Just be patient. People who are not usually don't make it in the market.  

"Harvard makes mistakes too, you know. Kissinger taught there. " -Woody Allen
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Katee replied on Thu, Mar 27 2008 9:04 PM

The oil sands in Alberta are looking especially good...

 Suncor Energy (SU) (i just grabbed this up last week)


ConoccoPhilps (COP) (I am also holding) 

 



"Harvard makes mistakes too, you know. Kissinger taught there. " -Woody Allen
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Mining stocks might be a bad idea, what's the consensus about Canadian energy trusts?

Those sound like a good inflation hedge.

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Nitro, if you're still wondering about Gold, you might get something from this.

 

http://fskrealityguide.blogspot.com/2007/12/gold-and-silver-buyers-guide.html

 

http://fskrealityguide.blogspot.com/2008/05/unconfiscatable-gold-myth.html

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