Monday, March 16, 2009

2009 Wealth Preservation Guide

2009 Wealth Preservation Guide Building a Fortress of Protection Around Your Life Savings

The perfect financial storm we predicted over three years ago arrived in 2008, catching millions of Americans by surprise, and it continues to destroy wealth in a way not seen since the Great Depression. It was a year when every major asset class from Stocks, real estate, and commodities to high-yield bonds suffered double-digits losses as over $30 Trillion of wealth disappeared.

As the financial world fell off a cliff, millions of Americans lost 30% to 40% of their life savings due to a failure to focus on wealth preservation.

Lack of Government oversight, greedy Wall Street bankers, and irresponsible Stock brokerage firms have destroyed confidence in the financial system. That’s exactly why Gold survived the Stock Crash of 2008 and actually increased in value by 6%.

Consumer-Driven Economy is Dead
We see little reason for the economy to come back to life soon. The $700 Billion taxpayer bailout has done little to avoid the worst recession since the 1930s. Despite massive Government spending, saving the economy will be like using a teacup to bail out the Titanic!

Corporate profits will continue to fall and we feel Stocks will have a tough year. The consumer-driven U.S. economy, based on borrowing and spending, is over. Stores are closing, the malls are emptying out. Today, investors need safe havens to park money in for the long haul. Too few investments have weathered the global financial crisis so far. However, Gold is one bright hope! Gold traded $46 higher in 2008 as the precious metal resumed its traditional “wealth preservation” role.

Stocks Need Decades to Recover After Crashes
Far too many investors have been brainwashed to believe “stocks always go back up” and quickly. That's not always true, stocks don't recover quickly after a "bubble and bust."

• After the 1929 crash, U.S. Stocks lost 80% and the Dow did not recover to pre-crash levels until 1954.
• 19 years after Japanese Stocks hit all-time highs, the Nikkei closed 2008 trading 78% below the record.
• The NASDAQ hit 5,132 at the height of the dot-com bubble in March of 2000 and trades nine years later at 75% below the all-time high.

WARNING: There’s a real possibility that before the current banking crisis ends U.S. Stocks
could fall in value another 20% to 40% and not recover for decades.

Prepare Now– The Worst is Yet to Come
We believe this is not the time to bet your life savings on Stocks or Bonds alone. The world economy entered 2009 in the worst shape ever. Something is terribly wrong with the banking system and won’t be fixed for years. Despite the U.S. Government’s $8 Trillion promises and corporate welfare, the taxpayer bailouts won’t fix what’s really broken. America must learn we cannot borrow our way out of debt! Nor can the government create paper money and spend our way to prosperity.

There will be a day of reckoning. The U.S. economy, based 70% on consumer borrowing and spending, has ended. We face years of sharply rising unemployment, soaring bankruptcy rates, a deep recession, and in the midst of it all comes inflation– with a vengeance.

In these harsh economic times, we remain convinced investors will need to own Gold to survive, thrive, and prosper. What's the best private and non-reportable gold? How can you buy gold?

Ask ga or jb now!

1 comment:

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