INFLATION AND INTEREST RATE HIKES WILL AFFECT YOUR ASSET PORTFOLIO

Posted By: Dr. Vernon Thomas, February 23, 2022

Easy monetary policy caused the bull run to start. Tightening it will cause it to end. The feds have been pumping money into the stock market for years with zero interest rate causing one of the best bull markets in history. This year this looks like it will end. The U.S. fed is looking at a minimum 4 interest rate hikes this year. The overinflated stock bubble looks like it could be one of the worst drawdowns in history. Worse than the dot.com worse than the global financial crisis of 08! Here is hoping that it’s not, but now more…

WHY ARE FEARS OF HIGH INFLATION GETTING WORSE?

Posted By: Dr. Vernon Thomas, May 21, 2021

USNews,Christopher Rugaber,May 12, 2021 Gas prices are rising. Auto prices are soaring. Consumer goods companies are charging more for household basics like toilet paper, peanut butter and soft drinks. All of which is resurrecting fears of an economic threat that has all but disappeared over the past generation: Runaway Inflation. It occurs when prices for most goods and services not only rise but accelerate, making the cost of living steadily more expensive and shrinking the purchasing power of Americans’ earnings and savings. On Wednesday, May 5/21 the government reported that consumer prices for goods and services surged 0.8% in April…

MAJOR BANKS REPORT MOST VALUABLE COLLECTIBLES/HARD ASSETS IN THE WORLD

Posted By: Dr. Vernon Thomas, February 19, 2021

Gems and Jewelry Timepieces / Watches Fine Art Rare Coins Thoroughbred Horses Fabergé Eggs Classic Cars Fine Wines Chinese Porcelain Stamps Unlike “paper” assets, all of the above collectibles have intrinsic value and are a tremendous storage of wealth. These assets coexist and complement other financial assets. COLLECTIBLES/HARD ASSETS FACTS AND FIGURES Credit, Suisse, Nannette Hechler-Fayd’herbe, Adriano Picinati di Torcello The motives behind allocating a share of wealth to collectibles are as diverse as the collectors themselves – whether it be social recognition, philanthropy, or collecting for investment purposes and a store of value.  Prior to the Covid-19 crisis, the…

COVID AND PINK DIAMONDS

Posted By: Dr. Vernon Thomas, November 4, 2020

As we move through one of the strangest years ever for investors, safety, growth and privacy are still number one concerns for investors the world over. Whether it’s Covid in 2020, the tech crash of 2001 or the housing crisis in 2008, Pink diamonds have held their value as well as steadily increasing. For those who are investing during a pandemic, pink diamonds should be included in that strategy. To avoid stock market volatility, maintain investor privacy and to allow for the ultimate in portfolio diversification, pink diamonds. have proved successful as shown in the chart below. THE ARGYLE DIAMOND…

PORTFOLIO PROTECTION STOCK DIVERSIFICATION

Posted By: Dr. Vernon Thomas, July 16, 2020

In the past, Investors who depended upon Stock Diversification would look to Recession Proof Stocks such as the best Blue Chip Stocks and the best Dividend Stocks as Portfolio anchors to combat the threat from Market Volatility and Risk. Year after year, they had the safest, best track record of Stock Market Returns. In the past, Investors who might have held Gold as a diversification tool in their portfolio are now looking to other Commodities to generate greater long term returns. For many, today’s Financial Diversification and Portfolio Diversification Strategies now list stocks as only a percentage of their total…

PORTFOLIO DIVERSIFICATION IN 2020

Posted By: Dr. Vernon Thomas, June 22, 2020

The US Economy has entered uncharted waters with the US debt approaching $30 Trillion, and a continuous threat from Stock Market Volatility and Risk. With debt that substantial, it will be a long, slow road to Financial Recovery and financial diversification to some extent. The Best Blue Chip Stocks and the Best Portfolio Dividend Stocks can form the Recession Proof stocks portion of a proper Stock Diversification Portfolio. But true Portfolio Protection now requires much more than that! Bear Market Financial Advice is everywhere, but that is not a replacement for proper Financial Diversification/Portfolio Diversification or Portfolio Protection. With the…

U.S. Debt in 2020

Posted By: Dr. Vernon Thomas, June 16, 2020

THE U.S. DEBT In 2020 the United States will see 4 Coronavirus stimulus packages. $2.4 trillion in Federal Reserve stimulus which will add to the current 25 trillion dollar debt! Billions have been spent to rescue small businesses and to bail out major industries as well as boosting record unemployment assistance. The close to 30 Trillion U.S. debt is larger than the economies of all but 6 other nations. U.S. PANDEMIC INFORMATION The only Federal Reserve response to this near Financial catastrophe has been to print U.S. dollars and inject it into the Commercial Banking system. Emergency measures like this…

Investing During A Pandemic

Posted By: Dr. Vernon Thomas, April 30, 2020

All Investors know that Bear Markets have a way of destroying Stock Market Wealth and the comparison between threat from volatility and risk sets in. If you can view corrections as natural at worst and an opportunity at best, you will be in a position to profit from other peoples’ panic. Although the media overhypes 10 – 20% market losses as the “end of the Financial World” as we know it, major corrections have now become quite regular! But they have not negated the ability of Markets to compound wealth over a long period of time. Investors should have a…