There’s no doubt we’re living in crazy times.
Despite a slight reduction in the amount of unbacked money it prints every month, the Fed is still burying the world in unbacked paper dollars.
Despite a paper-thin “budget deal,” the massive federal debt is nearing the $18 trillion mark and annual deficits are still massive.
Despite the trillions of dollars Washington has poured into the economy over the past six years, growth is still sub-par.
Despite Washington’s claims to the contrary, the real unemployment rate, measured the way our government used to, is still 13.2 percent.
Yet the Dow is up 10,000 points since its 2009 low. And this year alone, the S&P 500 has hit nearly four dozen new all-time highs in 2013.
So what’s the wisest wealth-building
strategy in times like these?
Is it better to take a purely defensive position and wait for the next shoe to drop?
Or should you simply ignore the dangers and swing for the fences?
The fact is you don’t have to make this choice. You don’t have to sacrifice return for safety.
You don’t have to choose either optimism or pessimism. You can make money consistently by adhering to one simple philosophy that trumps them both:
REALISM!
For 2014, this means taking three urgent steps:
Step 1. Recognize the dominant trends under way:
- The U.S. economy is improving. For the wrong reasons and in the wrong way? Of course! But improving nonetheless.
- Most U.S. stock prices are continuing to rise.
- Interest rates are moving sharply higher.
Step 2. To profit from these trends, use exclusively investments that are very liquid and easy to buy or sell at a moment’s notice. Always avoid instruments that lock you in — such as mutual funds charging exit fees or small caps that are thinly traded.
Step 3. Among these, buy only those that merit high Weiss ratings for safety and consistent returns.
Good luck and God bless!
Martin
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{ 1 comment }
You useless sack of manure…..While the market went up 160% you said get out the system is going to fail. Now you're saying "oh I guess I had a better idea now…get in and be ready to exit if you have to".