Monday, 23 February 2009

Investment: Selling Tickets For The Titanic

It drives me crazy and makes me very angry. There are people in Tokyo still being sold monthly and quarterly traded funds.

Why? Why in this market, in this, the first great depression of the 21st century, are there still people that trust the markets to the point of spurning liquidity.

Why are there people who will invest hard earned into assets where they have no possibility of getting out of their investments when they choose to do so?

Forget monthly traded funds. I hate weekly traded funds!

L-I-Q-U-I-D-I-T-Y!

I'm not saying don't invest. Quite the opposite. I'm saying look carefully at the structure of your holdings. Give yourself the option to get out of the asset when you choose, not when your broker or your fund manager decides that it is convenient.

There are great opportunities out there. We have proved that constantly since 2008. We bought assets designed to cope with the worst case scenario, such as gold and Ultrashorts. We were long yen before it was fashionable and will be anti-dollar for a long time yet. The longer that the dollar stays strong against the worlds currencies (ex-yen), the greater the impact of its fall in value. The dollar is in a massive bubble from which the air must be let out slowly or it will burst and collapse.

So we'll stay strong with gold (NYSE:GLD) and maintain our holdings in shorts.

But what we'll never do, is buy weekly, monthly or quarterly traded funds. That'll be like owning a ticket on the Titanic.

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