In today’s Money Morning…watching the world to see Australia’s future…where is gold headed in 2017?…forecasting central banks, and what you can do to protect yourself from their blunders…and more…
When you look back at how the world has changed in the last few decades, it can seem like it was impossible to predict. But look a little closer. There were almost always a few voices crying out about the opportunities — and dangers — if we’d only been prepared to listen to them. And keep an open mind — even when their predictions seemed difficult to believe.
There are always opportunities to be found in change, as well as dangers. As an independent-minded investor, you should be prepared for both.
And as Australians, we have an advantage that many others don’t. Tech, events and ideas often take weeks, months, or even years to reach Australia after they’ve hit the big boys. We can sometimes see the implications play out in places like the US and Europe years before they reach us.
That can help us anticipate them when they do arrive on our shores. And find the right opportunities for investment. This week, your Money Morning editors looked at global issues that could be on their way to Australia’s economy.
To discuss that, your regular editors Greg and Sam were joined this week by Jim Rickards.
Jim is an American lawyer, economist, and investment banker. He has 35 years of experience working in capital markets on Wall Street. As well as the editor of Strategic Intelligence and Currency Wars Trader, Jim is a multiple New York Times bestselling author. He regularly brings his expertise on world events, central bank strategies and their unintended consequences to the pages of Money Morning.
So, what are Greg, Sam and Jim’s best ideas for this week? Read on below…
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Greg opened the week with a discussion of why letting yourself get stuck in the past can cause you to miss out on some of the best investing opportunities. Or see your portfolio crunched by upheaval in outdated industries. He argues that, like it or not, huge tech-driven changes are coming to Australia’s retail economy. Your investments should be prepared. To read why, you can find Monday’s article here.
In the second article on Monday, Jim Rickards wrote about the shifting balance between the world’s three current superpowers, and the implications for markets. There’s a possibility for radical changes with the new US President this year. We could see ripples affecting markets all over the world. And with two of those superpowers among Australia’s largest three trade partners, the effects on us will be unavoidable. You shouldn’t invest on the assumption that this year will be anything like the last. Read more here.
On Tuesday Greg looked at the possibility of a correction in the Aussie market. Are we seeing the first signs of a change in direction? Greg pointed to one stock that he uses as an early warning sign for the dangers of a credit crisis. He explained why this stock’s global business should give you notice before a sustained correction or a market crash begins to hit Australia. Read the details in Tuesday’s Money Morning. And don’t miss Shae’s article from the same day, where she predicts gold’s direction in 2017.
Gold also came up on Wednesday, when Jim Rickards wrote about the US Fed’s war on cash. Jim has a better insight to the inner workings of central banks than most any other analyst. So when he says that central banks around the world are trying to eliminate physical cash and force everyone into digital money, he has the evidence to back it up. And an understanding of the frightening reasons behind that policy. This week Jim explained why the war on cash will inevitably lead to a war on gold, as well. But he says there’s a window of opportunity for gold investors… Before central banks turn their eyes on you. You can read the details here.
Jim is one of the world’s foremost authorities for forecasting the moves of central banks, and how you could trade to pre-empt them. So Thursday’s article may come as some surprise. Jim argued that it’s unexpectedly easy to predict the actions of the US Federal Reserve. But, as he explained, you just need to understand their goals, and the potential obstacles in the way of achieving them. Then you can map out how they’ll likely use the limited tools they have available.
The trick, then, is understanding the consequences — intended and otherwise — that will ripple out from their actions. And finding the trades to protect your wealth, and profit from those consequences. You can read Jim’s forecast for the Fed in 2017, and insights on what you can do about it, here.
Sam also wrote on Thursday, breaking from the doom and gloom with the last of his coverage of CES®, the world’s premier technology show. He discussed a revolution in how sports could be broadcast. It’s all based on the ground-breaking prototype that he got to see firsthand. It could change the way that millions of fans enjoy their favourite spectator sports. And it could mean incredible gains for investors getting in at the ground floor. It may be one of the biggest tech stories of the next decade. For your weekly dose of financial optimism, read more here.
Jim Rickards closed out the week in Money Morning with an article on Friday about how the crossover between global capital markets and national security affects you as an investor. He makes a compelling argument for why you should be putting 10% of your wealth in physical precious metals right now. And he explains the signs you can watch for an idea of when international politics could trigger panic buying in the gold market. Click here for the details.
And the latest Financial Anarchists podcast is up. Kris Sayce and James ‘Woody’ Woodburn talk about how Donald Trump wrought havoc on big pharma stocks this week. They were joined by Vern Gowdie, to ask about his upcoming meeting with former US Federal Reserve Chair, Dr Alan Greenspan. Vern doesn’t plan to throw him any ‘soft’ questions! Great listening for the weekend. You can download that for free here.
That was it from the Money Morning team this week. See you again next week!
Editor, Money Weekend
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