Well... the Federal Open Market Committee did it again and lowered interest rates. While it didn't really matter if they lowered it or now because effective interest rates were close to 0% before the meeting, it just shows how desperate the Federal Reserve is to jumpstart the American economy again.
This only proves that it is more of a reason to own commodities more than ever now. We all must be prepared for the future.
I am a 21 year old full time undergraduate college student majoring in Business and Accounting. I've made some pretty unlucky investment decisions in the past year trading on earnings reports and trying to double my money within days. However, I was correct on my longer term view of the economy and stock market by expecting a financial meltdown as early as October 2007. The United States economy is built up on credit and right now it is being unwound. One of the trades which I most regret was investing in the Japanese Yen and double inverse stock index by using ETFs in November 2007 such as the QID, SDS, TWM, FXY, and FXP but because of high leverage I was forced to sell them because of margin calls. If I had stuck to my longer term views, it would've made a very profitable trade. My family and friends doubted me last year but now have learned to listen to my advice wisely and seriously.
Current Holdings
JPM Sep 2009 20.00 put (JSAUD.X): JP Morgan Chase & Co. Put Option UltraShort Real Estate (SRS) PHYSICAL Silver Metal PHYSICALGoldMetal
If you must buy an ETF for gold or silver, take a look at CEF: Central Fund Of Canada or GTU: Central GoldTrust. Their holdings primarily consist physical bullion and are audited frequently. With the exception of CEF and GTU, DO NOT buy the other ETFs for gold or silver. They are vehicles used by the central banks to keep the price of gold and silver down.They do this by shorting bullion that isn't physically held by the fund.
I am not responsible for any actions that you take as a result of this blog. I am not a financial advisor or affiliated with any FINRA broker or dealer. Please note that this blog is for educational purposes only and that investment actions should be based upon your own research. You agree to hold the author of this blog free from all responsibility as a result of investment actions taken.
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