The best investment decision you can make for the next decade? Get out of dollar denominated assets.
Where you place your assets will be more important than ever as returns for many asset classes narrow.
Whether you move into Asian based currency, (the yuan, the Singapore, Hong Kong dollars) Asian based ETFS - iShares China (FXI), Hong Kong (EWH) Singapore (EWS), South Korea (EWY) or Taiwan (EWT) or hard assets that are stores of value we don’t care. A mix is best. We’re mildly positive on gold. The problem with gold is that 95% of the market is in derivatives. Other hard assets have been turned into derivatives as well through ETFs, leverage and structured instruments. After Wall Street gets everyone into the hard asset pool, the result won’t be any different than the meltdown of financial markets through financial engineering in 2008-2009.
Sound Cynical? You bet!
We like hard assets that can’t be duplicated. Of course, brokers and Wall Street can’t recommend these because they can’t make any money off of them.
We know the art market well and are seeing buying opportunities for important Old Master’s works at $50,000 and up. Unbelievable. These works should be selling in the 7 figures. We’re talking British landscapes, 12th-14th century work. Now is the time to put together a collection on the cheap.
Art historical leaders are reporting that people are buying art as a refuge. A refuge against the dollar, the euro, equities. Tremendous liquidity is looking for art now. Demand is increasing and supply is diminishing,
Sotheby’s (BID) stock, the only public pure play, after hitting a low of $6.05 is broaching the $12 level after announcing additional layoffs and a dividend cut. The shares are attractive, as expectations have been wrung out of the shares.
Disclosure: No positions