Frodo

Next Stop: $2,000 Gold

Investment advisor Harry Browne eventually came to the conclusion that strategy was more important than forecasting. Consider that thought carefully.

He wrote a book called Failsafe Investing, and also was an advisor to the Permanent Portfolio Family of Funds. The point was to use a higher than normal amount of precious metals combined with the usual stocks, bonds, and cash. When something goes crazy, like gold has done, the Permanent Portfolio re-levels the portfolio by selling some of, in this case, the gold. This formula has soared recently, and has never sustained a continuous losing streak of any concern.

If what you want is to preserve and reliably grow your nest egg, have a look at the Permanent Portfolio, or read a downloadable version of Failsafe Investing (used hard-copies available via Amazon). The suggested strategy will not keep up with a jubilant stock market. But when the market suddenly loses 1/3 all at once - as we have recently witnessed - you'll be smiling, as PP investors have been in recent years, enjoying 12 to 14% annual returns while everyone else is being skewered.

It's all about peace of mind and the knowledge that you will prosper in all conditions - even to the point of thriving in the rare instance of a complete financial meltdown or runaway inflation.

And if you don't know who Harry Browne was, please look at HarryBrowne.org, and then curse the media for not covering his presidential campaigns in 1996 and 2000. He was on the ballot in all 50 states in '96 and 49 states in 2000. He was also one of the most brilliant and gentlemanly humans I have ever observed.