Archives for July 2020

The Fed has created a disastrous asset bubble that will extend for years.

Read my series on Ron Paul to gain the full flavor for what is transpiring.

I devoted a large section of my 1987 book to inflation, gold, and Switzerland. Through the decades, I have been a big investor in both Swiss assets and gold.

In the month of August, 100% of my personal investing will be in Swiss Franc-denominated assets.

Click here to view my Swiss chart pack.

The Swiss Way

I have written in the past of the Swiss Confederation and its weak central government form (the presidency is a ceremonial office and rotates). The office has no powers above the other six members of the Swiss Federal Council. The entire Federal Council is considered a collective head of state. Switzerland is a neutral country with a low crime rate and a powerful national defense system. Instead of fielding a large standing army, Switzerland requires every man to undergo military training for a few days or weeks a year throughout most of his life. Each man is required to keep his assigned automatic rifle at home at the ready. The Swiss are powerful believers in individual liberty and freedom. They believe that there is no need for a higher legal authority to check people’s initiatives. In fact, federal court in Switzerland is not allowed to rule on any constitutional matter at the national level. The Swiss are all about keeping things at the cantonal level. Keep it local is the key in Switzerland.

There is a lot to learn for Americans from “the Swiss way.” Switzerland’s model is precisely the weak form of central government intended by our Founders. The best outline of what a constitutionally strong form of federal republic looks like is Ron Paul’s Liberty Defined. The chapter on “Empire” alone will amaze you.

Read more about The Swiss Way here.

Back then I offered subscribers to my investment strategy report a ten-point investment guide for the long term.

The basic plan is today, thirty years later, pretty much unchanged.

1. Make capital preservation your number one target
2. Make dividends the cornerstone of your core equity portfolio
3. Never forget the power of compound interest
4. Make equities, not bonds, your core holdings.
5. When general market conditions are horrible, and most folks are selling, aggressively buy your dividend stocks
6. Use automatic withdrawal programs for retirement income
7. Don’t trade in and out
8. Remember the words full faith and credit.
9. Never invest based on predictions. Invest based on relative value only.
10. Be well organized, always have a plan, practice patience.

Due to a convergence in timing, I was able to make by far the biggest commitment to the stock market in my life during late March and into the second quarter of 2020.

On 31 March 2020, I posted My Three Week-Long Investing Program.

It led off, “I am ramping it up over the month of April and into May.”

As reported 30 June in the WSJ, U.S stocks finished their best quarter in 20 years.

I also posted the exact areas I was investing in and why. No way I could have expected such quick and massive returns. Given that Joe Biden is apparently attempting to put a quick end to it all by proclaiming, “we have 120 million dead,” I suppose I should not get too comfortable.

OK, now what?

With Joe Biden now seemingly considering a VP candidate with sympathy for a Marxist-centered group, it is possible his campaign will implode, bringing turbulence to the financial markets?

I will update my investment strategy posts at the end of July.