Few are willing to call it but the facts show the 2011 economy is far from any form of a recovery. Like a boxer past his prime, many industries are dying regardless of how much tax payer bailout money is thrown away. The ones willing to accept this change strong enough to divest from dying industries and dying dollars have a much brighter future than ones that don’t. Today we look over three dying industries and three emerging industries. Once again, the facts aren’t what we want to hear but they are the truth. The question, are dying industries stealing your money?
DYING INDUSTRY #1: WALL STREET replaced with GOLD $ SILVER
WALL STREET OUT
I recently had a lady email me saying she understood the benefits of gold but wanted to invest her savings in something with a long track record like stocks. I guess 5000 years as real money is not long enough for this investor. There are two reasons why Wall Street will soon decline and if your savings is here please listen up. The #1 reason Wall Street is in danger of decline is many stocks are not worth what they sell for, not all of course but many. Billions in bailouts have created a Wall Street bubble and its collapse will evaporate billions of dollars from hard-working citizens. The second dagger for Wall Street is greed by exposing new crooks every time we turn on the news.
GOLD & SILVER IN
Gold and silver will see a major part of fleeing Wall Street money for many reasons but none more than boomers protecting a shrinking nest egg. We recently posted how a majority of our seniors have no hope of ever retiring by admission. It is difficult for some to believe an asset with a ten-year bull run is an emerging market but the truth is physical gold and silver is cheap compared to not so distant prices. The next phase of precious metal buyers will find motivation by fear and self-preservation. Combine this with a limited supply of physical metal and it’s not hard to see why many experts predict $2000 gold soon.
DYING INDUSTRY #2: NEW CONSTRUCTION OUT & MR FIX-IT IN
NEW CONSTRUCTION OUT
The Prospector Site has posted several examples of residential real estate for sale at 1/3 of replacement cost. Think about this for a second, why would someone build new when an existing property can be bought 50% to 70% less? This price decline coupled with huge inventories is playing havoc for all remotely related to new construction. Case-Shiller Index recently stated our residential housing problems are many years away from improvement. Those sitting on large inventories or equipment dependent on new developments may want to reconsider, quickly, these positions.
MR FIX-IT IS IN
If you have been a homeowner for anytime then you know stuff around the house needs fixing. Now I’m a handy guy but anything plumbing or electrical related and my first move is calling a pro. Regardless of how bad our economy becomes there will be a need for quality service oriented repair companies. Some contractors will easily slip into this emerging market but others will see it coming only after it’s too late. Repair type business has many benefits including low overhead, low manpower, and low capital needed. As we see more owner occupied property move into the rental category the need for repairs will be as large as ever.
DYING INDUSTRY #3: ENTITLEMENTS OUT & SELF RELIANCE IN
The cattle ranching industry has a simple term, and I will paraphrase a little, by saying the source of the milk is dry. Not only those dependent on entitlements but ones that draw a paycheck dispersing entitlements are at risk. John Stossel ( see it here) recently reported how a Alabama town cannot pay pensions for retired municipal employees. Imagine someone telling you thanks for 30 plus years and by the way we have no way to pay your pension. History will show debt and entitlements broke the back of our current economy with some help from greed and stupidity. Older or disabled folks will feel this pain the most as entitlements dwindle just as housing, food, and health care cost rise. The saving grace of community churches, clubs, and organizations will step up just as government entitlements step down. Your help will be needed.
By definition, independence means a sufficient income for comfortable self-support. The one thing I love about owning gold and silver is how I usually feel the day’s bad news is pertaining to someone else. Please don’t take that wrong because I’m all about helping others every way possible, in fact, gold and silver allow this to happen. A dependence shackles those willing to succumb to a power of control therefore dependent on this power. Let me give a few examples of how precious metal ownership breaks the shackles of dependency. Inflation is powerless over gold and silver. Declining real estate values are powerless over gold and silver. Government deficits are powerless over gold and silver. Social Security cut backs, Medicare cutbacks are powerless over gold and silver. Your local bank closing is powerless over gold and silver. Are you starting to see the point here? Independence is the next big trend and the foundation to independence is a safe store of real money.
FORBES: 16 Things I Wish I Knew About Money When I Graduated College
12. Never invest in anything you don’t understand. Otherwise, you won’t know what you’re buying; you won’t know when to sell; and you can’t accurately evaluate the advice you’re given.
15. The biggest financial risk you can take is to ignore your money, and do nothing at all. Read more here.
FORBES: 10 Things Not to Do When Going Back on Gold
The lesson is to keep it simple. Properly run, you’ll see the gold standard deliver in huge fashion – in terms of growth, living standards, and the ability of people to save money that will hold its value. Populist results will come from hands-off policy.
It’s getting to be a distinct possibility that relatively soon, the major world currencies will make themselves convertible to gold once again. Read more here.
MARKETWATCH: Real-estate scam that’s devastating prices
WASHINGTON (MarketWatch) — Question: My neighbor in Palm Springs, Calif., who claims to have millions or more in the bank, let his home with a $1 million mortgage go into foreclosure. A real-estate friend of his bought it from the bank and is renting it back to him. After one year, my neighbor plans to buy it back. It affects me as a homeowner because now we have a home in our community that shows a sale price for $600,000, instead of the current market of $725,000. How do I report such activities? —J. McK.
Question: I am a real-estate broker in San Marino, Calif., that specializes in foreclosure and short-sale properties. Although Bank of America is a client of mine that I regularly represent in such transactions, I am interested in bringing to light an advertising campaign that I have found offensive and, dare I say, even racist? Any idea how we could get these ads some publicity that might make them a little more sensitive to their customers? —P.A. Read the answer here.
Tags: $2000 gold, dying industries, gold & silver in, owning gold & silver, physical metal, saving grace, self reliance