Always Invested at All Times


This is a full transcription of Friday’s Market Situation Report.  If you would prefer the video format, you can find it here.


Always Invested at All Times


One of the true miracles in life is watching children grow.

I feel very blessed that I have the option to watch my kids go through all of the stages of growing up.  Experiencing that, feels very miracle-like and very rich.

Ever, my daughter, is two years old now and as squishy and lovey as can be.  Of course, along with all of the cuteness, come the demands of a two-year-old.  Bowen is five, but if you asked him, he would insist that he’s “five and a half!”

One thing my kids constantly want, is what I think you want too…more choices.

We all want the same thing.  We want more choices.  We also want to surround ourselves with people who have more choices; like options, security and freedom.

The key is choices.  The more choices you have, the more secure you feel.

For many, their top choice is to have the option to not work.  They may still work, but they want to know that they don’t have to.

This reminds me of one of my core investing beliefs.  I do not think I have discussed it lately…or at least not enough, so I want to talk about it again.

I hosted a webinar this past Wednesday called “Peak Gold”.  I spent the entire weekend building the presentation and researching the data – and then I gave it away free to everyone.  The webinar itself was about 70 minutes long, but then I spent another hour and half after the webinar personally answering people’s questions about the future of gold and their investments.  If you want to watch it, you can do that here.

I wanted to give it away because I had the sinking feeling that people were not/are not approaching their investment in gold properly.

This whole process reminded me of a phrase that I’ve been hearing again lately from people.  And that phrase is, “My money is set aside in cash…”

So let me be clear with you right now, “You are always, at all times, invested.”

Your money is NEVER set aside.  It is always, at all times, invested.

 

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There is no way that your money is not invested.  If you collect lawnmowers, then it is invested in lawnmowers. 

If you collect antique cars, then it is invested in antique cars. 

Even if you have money set aside “in cash”, you are invested in cash.  There is this belief, and I hear it a lot living in Silicon Valley, “Oh no, I am not invested.  My money is set aside in cash.” 

Again, I respond, “You are always, at all times, invested.” 

If you know anyone who has set their money aside in cash, that is not just setting money aside.  You are actually investing in the U.S. Dollar.  (That is for those living in the United States.  If you live in Canada, you are investing in Canadian Dollars – and so on).

The more you understand that you are always invested at all times, the more you will think about investing differently.  Then, you will realize that strategies are what determine your wealth. 
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There are only four places in the world where you can invest, put, or set your money:

  1. Companies:  publicly or privately traded companies.
  2. Debt:  You can lend your money to people, the Government, Coca-Cola, Chevron, even municipalities.  When you lend the money, it is debt. 
  3. Currencies:  I personally consider Gold and Silver a currency, although silver is also used for industrial purposes.  Currency is one of those places where you can set your money aside.  It is always invested, all the time.  (Even if you set it aside in ‘cash.’)
  4. Physical:  this could be collectibles, commodities or real estate.  Whatever it is, it is physical in nature.  Compared to the other three, this does not have many subcategories.  You can set your money aside in real estate, gold, collectibles or you can invest in those. However it is the same thing.

 

There is no fifth category.  As I meet more people, many say that they got out of the stock market four years ago due to the pain and the 60% loss.  Some people are still thinking that their money is set aside.  It is not.  It is invested in currencies.  

Even from the bottom of the stock market in March 2009, the U.S. Dollar is down 15%.  And that is against other printable currencies like the Yen, Yuan, Euro, and Pound.

Look at where your money is and what it is invested in, because it is invested.

If you have your money invested in stocks, asset classes, or sectors, then you most likely have been hurt the past five or ten years. BUT…

What works best is investing in strategies, because strategies can adapt to what is going on and always be looking out for you.  Invest your money in strategies.

So, how would you explain your strategy to someone?  If your money is invested, and you just learned that money is always, at all times, invested, then you are running a strategy.

So, what is it?

If you have strategies that adapt, you will always be more prepared for whatever comes your way. 

My next Monthly Strategy Gathering is May 14th.

 

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We will cover:

The Markets
Speed Investing
Live, extensive Q&A
Update on Strategies
Market X-RAY

With Gold going through a ‘correction’ right now, it has never been more important to understand what your strategy is with your money. 

Together, we are growing and protecting your wealth,

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My Note: Precious metal mining companies were already available at ridiculously low prices before the crises in Gold.  Now, they are representing the kind of bargains that come only once in a generation. To watch the Peak Gold webinar for free, just click here.

 

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