Here are the latest items and commentary on current economics news, market trends, stocks, investing opportunities, and the precious metals markets. We also cover hedges, derivatives, and obscura. And it bears mention that most of these items are from the “tangibles heavy” contrarian perspective of JWR. (SurvivalBlog’s Founder and Senior Editor.) Today’s focus is on the recent Bitcoin price rally. (See the Cryptos section.)
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In a discussion about the likelihood of a recession, I had a friend ask me: “What stocks do you think will be recession proof?” My reply: “Precious few are recession proof. And virtually none are Depression proof.” I’ll tell you the same thing I told him. To paraphrase: Interest rates are rising, and we are long over-due for a recession. Be ready for a bear market in equities and a long, deep recession or full scale depression. Sell some of your stocks and diversify into tangibles. For a point of reference, my net worth is presently divided (approximately): 60% in ranch land, 25% in precious metals, 14% in guns and ammunition and 1% in cryptocurrencies. I now own no stocks or mutual funds. If you do hold any stocks, I recommend that you either put in stop loss orders or reduce your stock holdings to no more than 15% of your net worth, until the end of the upcoming recession. Furthermore, you should hedge by shifting your stock portfolio into some hopefully recession-proof stocks. Two time-proven winners seem to be Johnson & Johnson (JNJ) and Clorox (CLX).
Economy and Finance:
Reader H.L. sent us a link to this at Zero Hedge: Germany Recession Indicator Flashes Yellow
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Wheat futures higher as renewed trade worries weigh on soybeans. JWR’s Comment: The late advent of spring does not bode well for wheat production. If the planting dates get pushed our any further, we can expect to see sky-high wheat prices next year. This is a good time to re-stock your family’s hard red winter wheat storage!
Cryptos (Bitcoin Price Rally):
On Wednesday and Thursday, the cost of a Bitcoin crawled up out of the gutter, reaching $8,350 on Thursday evening. But this won’t be a confirmed rally until BTC holds over $9,000 for at least five days. For now, I recommend keeping your Bitcoin holdings small.
The rare coin market has remained weak for the past year. Both raw (ungraded) coins and slabbed coins seem to be suffering. (See the recent prices at the PCGS web site.) As most SurvivalBlog readers are aware, I lean toward bullion coins–not numismatics. I do own a few slabbed mint state coins, but most of those are in the lower grades (MS-62 and lower.) The prices in those grades seem to move in harmony with the spot prices of silver and gold. By the way, I did recently pick up some slabbed U.S. Mint Liberty platinum coins, but only because I was able to buy MS-69 slabs for just a little more than buying raw coins.
SurvivalBlog and its Editors are not paid investment counselors or advisers. So please see our Provisos page for our detailed disclaimers.
Please send your economics and investing news tips to JWR. (Either via e-mail of via our Contact form.) These are often especially relevant, because they come from folks who particularly watch individual markets. And due to their diligence and focus, we benefit from fresh “on target” investing news. We often “get the scoop” on economic and investing news that is probably ignored (or reported late) by mainstream American news outlets. Thanks!