Categorized | In the Markets

Invest in Hard Assets!

I love hard assets… like energy, agriculture and metals.   Why?  Because there is a good chance that inflation is going to devalue paper currency around the globe.

You need to have a portion of your wealth in something tangible—something you can hold in your hand, like a hard asset.  I’m talking about oil, grains, livestock, sugar, copper, aluminum, gold, silver, platinum and even forest products like lumber.

The price of oil will never go to zero!  Someone will always be in the market to buy gasoline.  Gold has never been worth $0.  Silver could always buy you a meal–even in ancient times.

But can the value of a stock or a paper currency go to zero?  Yes, indeed.

One good way to invest in hard assets is to buy the Market Vectors RVE Hard Assets Exchange Traded Fund (HAP).  This ETF closely tracks the Hard Assets Producers index which consists of over 250 companies engaged in the production and distribution of hard assets and related products and services.

The Hard Assets Producers index was developed by the legendary international investor Jim Rogers.  It includes water and renewable energy sources like wind and solar which are ever more important natural resources.  Some of the big holdings of the index are Monsanto, Exxon Mobil, Potash, Syngenta, BHP Billiton, Archer-Daniels-Midland and Gazprom.

Protect your wealth and invest in hard assets.

Best Wishes,

Ted Peroulakis

P.S.  My new options service will recommend options on companies in the hard asset business.  You could really multiply your gains with the right options plays…  Check out my new Options Power Trader.

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This post was written by:

Ted Peroulakis

Ted Peroulakis - who has written 152 investment articles on Investors Daily Edge.


Ted’s passion is protecting and growing people’s wealth. He earned a Bachelor of Science degree in Finance from Florida State University and graduated at the top of his MBA class from the University of Miami, where he specialized in International Business. With more than 15 years of experience in the financial industry, Ted was trained in the World Trade Center by Morgan Stanley Dean Witter and seasoned as a stock broker on Wall Street. He also has experience starting and running a successful financial firm. He studied under legendary financial icon Dr. Martin Weiss, and learned the best ways to protect wealth and profit in a bear market while at Weiss Research. Now, Ted is a valuable member of the Investor's Daily Edge staff as financial analyst and editorial contributor. Ted’s expertise is in showing investors how to invest and profit in natural resources, options, bonds, currencies, futures and stocks.


3 Responses to “Invest in Hard Assets!”

  1. George Haas says:

    Ted:

    Correct observation on Capital One. But the whole group has run out of gas, technically. I might also suggest you look at Prudential. Their recovery from 11 to 40+ in 3 months is astonishing, but their price pattern too suggests a steep correction is beginning. Support is just ahead, but it does look ominous!

  2. John Downing says:

    Ted –

    I like a man who stands and says “This is gonna happen”, not “maybe yes, maybe no”.

    Do you support buying gold calls or is it more important to own the metal? Also, I think we’re in for a rough 12-18 months, green shoots shriveled - would you buy index puts or focus on individual companies? I don’t have a lot to play with, so even a 15% annual return won’t change my lifestyle - I need leverage.

    Thanks,

    John

  3. Randy says:

    Ted,

    If Capital One is doomed, why not sell calls (which expire worthless 80% of the time) instead of buying puts.

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