Thursday 21 March 2013

No Light at the End of the Tunnel Seen

Sometimes, no....most of the times, people just put too much faith in their government to sort things out.
As in the case of the Cyprus bank bailout........it shows that often times the people in charge just do not know what to do! While for the past few years there have been a long standing "tradition" of bail-outs, this time they decided to conduct a "bail-in" by taking depositors' money. Now even New Zealand is talking about resorting to the same actions if they would to encounter the same situation. Even the Fed Chairman, Ben Bernanke signalled that if things got out of hand, they wouldn't discount a bail-in.

Anyhow, here are a possible few trades you might be able to do:

1. Buy Precious Metals: Gold and Silver (As I write, Silver has broken through the USD29 level). Let's see if it holds.

2. Shorting the EUR/USD pair might be a good bet, but do so cautiously. 


3. Consider BITCOIN. It has had a spectacular run from when I noticed it at USD14 to USD69 now.

Do more homework about it, find out if it is right for you.


Finally, I would recommend that instead of taking a passive stand in managing your finances, and your assets, take an action stance. Not believing in everything your government does makes you an active, and more responsible citizen. That does not mean you are anti-government. Infact, if I'm the government, I would see you as less of a threat. That's right...being independent minded does not mean you are an anarchist.

Let me describe a situation:

Let's say suddenly there's a bank run situation. Being an active citizen, you might have already withdrawn enough of cash, and might even have some gold or silver. You wouldn't be one of the many trying to to withdraw their money off ATMs, and certainly wouldn't be a security threat to the government. You also might have probably stored enough of supplies, and wouldn't join the mob to the supermart.


Time for change of mindset. Be independent and think for yourself! Don't wait for shit to happen and react.

No comments:

Post a Comment