dsrtwriter

How to Participate in the Asset Bubble Safely

I agree that for low risk tolerance, the suggested portfolio of the late Harry Browne is a good option. I would only say that a large portion of the cash should be in currencies other than the U.S. dollar.That is for long term, not worrying about a dollar resurgence and a paper "loss" as a result of holding Can dollars, SFs, Aussie dollars, etc..
Same goes for the commodity based currencies, such as Can,. and Aussie; if commodities drop, these will drop in tandem, but fundamentally they represent a more "real" resource based economy.

In contrast, the U.S. dollar does not represent any known long surviving economy. Manufacturing has been largely lost to overseas for many reasons. Ironically, China has grown rapidly while violating most of the economists' tenets of the merits of "free trade". We have done the opposite. Obama is for the unions, he has hired economists who are Keynsians, and the U.S. dollar will pay the price.

In fact, apart from confiscatory taxation, Obama and friends can only achieve a mission of income redistribution by destroying the dollar. After all, who has dollars? Working middle class and of course the "rich" (maybe).

So I would say, of the 25 percent allocated to cash, I would go:

ten percent Canadian/Aussie dollar (I prefer Canadian)
ten percent Swiss franc or Euro
five percent U.S. dollars

Jim Rogers on the Next 10 Years

It is indeed remarkable that Mr. Rogers cheers a country which has developed most of its technology through stealing and reverse engineering. Our situation is much our own fault for buying into the economists' mantra of the benefits of "free trade". Americans loved cheap Chinese goods as long as they still had the jobs in their own companies, as long as they did not work for slave wages and hours like Chinese children.

Now we see the economic consequences. The greatest tragedy is that as we assault the very character of our founding fathers, as the courts reinterpret a Constitution which was unique in the world in preserving individual freedom, people like Mr. Rogers glorify the economic success of a country which still sells the organs of political prisoners on the black market, and crushes freedom of expression as in Tiennamin Square.

Even the uber liberal Google founder Sergei Brin turns a blind eye when it comes to doing business in China; freedom of information, the mantra of Google, is "relative" when the temptation of the Chinese market beckons. Hypocrisy reigns rampant.

This may not end well for the West; just look at the growth of the Chinese military. If China decided to seize Australia for its resources, would we come to the defense of the Aussies?

Really, you think we would?

Oh, I forgot, we have the U.N., and our President just won the Nobel Peace Prize.

I feel much better now.

What a Difference a Year Makes! Endowment, Buy and Hold, and Tactical Returns

very good point. I would also like to see that gold analysis.It might provide some helpful clarity as to how to position gold in a market which is currently in recession but has the possibility of trending into inflation, just when everyone has ruled it out.

Supply and Demand Have Little Relevance in Commodities Prices

We are again seeing a cycle. With prices down in metals, existing efficient mines may be put on "care and maintenance" or reduce output in response.
Marginal mines recently opened to meet high prices will close, but again be maintained should there be a rebound in a few years.

New exploration budgets will shrink,but exploration will continue.

Oil and mining companies may be witnessing a more dramatic drop this time than previously, but they have lived with these swings for years.
Inventories will drop and not be renewed until the prices recover, and then likely the price rise will again be dramatic due to the lack of inventories and decreased output of producers, which cannot be immediately switched back on (inputs such as equipment, employees, etc. must be reintroduced).

Commodities may or may not have bottomed at this point, but one can be sure that in the future, producers are not going to extract metals and oil without asking for a lot more U.S. dollars.

Oil Takes a Breather - Fast Money Recap (5/22/08)

I agree.I have a couple of Mercedes, and rented a Ford Fusion "SEL" this weekend. I was impressed with the style, fit,finish and driveability.The Edge also looks unique and quality.

I think flex fuel/hybrids would be a great idea for Ford.Japanese cars are reliable, but Ford has an "edge" (pun intended) now in styling and getting closer in quality finish to the Japanese competition.