'If you don't own gold... you don't know history'...

'If you don't own gold... you don't know history'... New highs for gold... New lows for the dollar... Steve Sjuggerud's latest China prediction...
 
 "If you don't own gold... you don't know history..."
 
Ray Dalio's comments on gold will sound familiar to regular Digest readers.
 
Dalio is the billionaire founder of Bridgewater Associates, the world's largest hedge fund. He's one of the most respected thinkers on Wall Street. Over the last 20 years, he has made nearly 15% a year for his investors, ranking him among the best investors in history.
 
Dalio famously said investing legend Warren Buffett was "making a big mistake" by not owning gold. In a video last week, Dalio again explained why every investor needs to own gold...
 
Gold is a currency... We have dollars, we have euros, we have yen, and we have gold... View it as an alternative form of cash... and also view it as a hedge against [the rest of your investments].

Dalio said if you don't have some of your savings in gold, "there's no sensible reason, other than you don't know history and you don't know the economics of it."

When asked if he personally owns gold, he simply said, "Oh yeah, I do," with a smile.
 
 As we've noted before, Dalio is no "gold bug." He's just a brilliant investor who believes it's too risky not to own some gold today. We agree. As we mentioned in the March 26 Digest...
 
We're bullish on the precious metal, particularly with countries around the world in a race to debase their currencies.
Our argument is simple: You can collect zero-percent interest in the bank (or pay banks for the privilege of holding your money)... or you can hold gold, which also yields nothing... but protects you from the reckless money-printing we're seeing around the world today.

We always suggest holding a portion of your wealth in physical gold... not as an investment, but as a form of savings and "insurance" against government foolishness. (If you're new to the reasons for owning gold, be sure to check out our short introductions in the Stansberry Research Education Center, here and here.)
 
 When you start to view gold this way, you'll no longer obsess over the day-to-day price movements or worry where prices are headed next.

But gold traders aren't so lucky...
 
Since peaking in 2011, gold and gold stocks have suffered a terrible bear market. Shares of many gold stocks have declined 80%-plus.
But we may finally have some good news for them as well...
 
 Gold prices hit a three-month high today, breaking above $1,225 for the first time since February. But despite the rally, investor sentiment toward gold is still terrible.
 
As Brian Hunt and Ben Morris noted in last Thursday's issue of DailyWealth Trader, this could be great news for gold traders...
 
Extreme sentiment is a contrary indicator... When most folks are extremely bullish or bearish about an asset, they're usually wrong.
One of our favorite measures of sentiment comes from Jason Goepfert, who runs the excellent SentimenTrader website. Jason's Optimism Index, or "Optix," shows extreme pessimism when it falls below 30...
 
Today, Jason's gold Optix reads 24... That's still extremely pessimistic... Higher prices in the face of extreme pessimism are a great sign for our trades.

 While gold is making three-month highs, the U.S. dollar is nearing its weakest level in three months...
 

 
And the euro is stronger than it has been in the last three months...
 

 
Regular Digest readers aren't surprised. As we noted in the April 6 Digest...
 
Bullish sentiment toward the dollar is at an all-time high. And speculators have more bullish bets on the dollar than ever before...
This type of extreme sentiment and price appreciation (in regard to the dollar) normally means a correction is coming...

Our own Steve Sjuggerud was one of the first analysts to predict this move... and prepared his subscribers before it happened. As Steve told subscribers in the March issue of True Wealth...
 
Avoiding the euro has been the right thing to do... The euro has crashed by 19% since May versus the U.S. dollar.
But now, things are changing... The euro is set to soar and the U.S. dollar is about to fall... Because of this situation, we need to change the way we own European stocks.

Steve's True Wealth subscribers are up 5% in three months on his favorite way to profit from the "Draghi Asset Bubble" in Europe.

 Steve's subscribers are also making a fortune in Chinese stocks. As we reported in the December 15 Digest, Steve called Chinese stocks "the best chance for 100% gains in the next two years"...
 
On August 25, 2006, the Shanghai Stock Exchange Composite Index stood at 1,623. One year later, it was at 5,150. That's a 217% gain in one year – for the entire stock market. Even better: From its bottom in 2005 until the top in 2007, the index soared more than 600%.
So what happened to make Chinese stocks soar hundreds of percent? In short, the Chinese government decided it wanted the stock market to go much higher.
 
On August 25, 2006, the Chinese government announced new rules that would allow more foreign investors to invest in "locals-only" Chinese stocks (China has two classes of shares... one locals can buy, called "A" shares, and one foreigners can buy, called "B" shares). That reform was part of a broader scheme by the government to push the stock market higher. It worked. And it's about to happen again...

Steve's True Wealth subscribers are already up 19%, 88%, and 27% on three of his favorite ways to profit from China... But if you aren't already long, Steve says it's not too late.
 
In the latest issue of True Wealth, out last Friday, Steve reaffirmed his bullish call on China. He says China is still "our biggest chance for gains right now," thanks to a surprising move set to hit China's stock market this summer.
 
Out of fairness to True Wealth subscribers, we can't reveal all the details here... But Steve says it could result in hundreds of billions of dollars flowing directly into Chinese stocks. Steve called it "an incredible opportunity that you must take advantage of."
 
 This is just the latest move in a powerful trend that could turn China into a global superpower faster than almost anyone believes possible. Steve says this trend could have serious implications for investors.
 
That's why he published a video presentation explaining exactly what he thinks will happen... and what it means for you and your investments. He says investors on the right side of this trend could make a fortune over the next few years. You can watch the full presentation for free right here.
 
 New 52-week highs (as of 5/15/2015): Activision Blizzard (ATVI), Blackstone Group (BX), WisdomTree Japan Small-Cap Fund (DFJ), KraneShares E Fund China Commercial Paper Fund (KCNY), and ProShares Ultra S&P 500 Fund (SSO).
 
 Plenty of people wrote in with their opinions about Porter's announcement on Friday. We're running three of our favorites in today's mailbag. Send your notes to feedback@stansberryresearch.com.
 
 "Hi Porter, you asked for some feedback at the end of today's (Friday) missive. I don't normally write in, but your email struck a chord today. As a father of three, I can surely relate to your story as a kid. One lesson I tried over and over to teach my kids was exactly what you said – you become who you are with. Unfortunately two of my kids chose to ignore that advice and ended up on uncomfortable paths for a while.
 
"I absolutely love the idea of a Stansberry Asset Management business. For years I have been hoping something like this would come along. Unfortunately for me, I probably won't be able to utilize that service since I only have about $500K in investible assets at the moment. Nonetheless, I am very excited for you and your company! This is a tremendous next step, and I wish you all the best." – Paid-up subscriber Wes
 
 "Hey Porter, I'm always impressed with the rate and pace of your new business ideas, and Stansberry Asset Management intrigues me. For one, I like the idea of a challenge, so it begs the question in my mind of 'how Erez's performance might compare to my own as an individual subscriber?' I suspect it may be a silly question which is why I'm intrigued by the new venture! For me to jump in from the start, however, it would have to be closer to $100K than $1M while the silly question gets answered.
 
"As for life philosophy, while I've experienced Arnie's words of wisdom within my own family, I've personally spent lots of time at work with a few people I choose to never become. Besides seeking out those who are smarter than I, the older I get the more I demand alignment of values and character as well. I'm personally finding it easier to find the former than the latter these days, and I can't help but conclude that the 'End of America' is partially associated with politicians and sports stars who lie and could care less about the examples they set for our youth, corporate boards that award CEOs with bonuses and outrageous pay while the businesses they lead degrade, parents who take no responsibility for children they bring into this world, etc.
 
"My philosophy aligns with yours Porter... surround myself with people like you who are smart, passionate, seek out laughs and good times, and most of all follow the Golden Rule of 'do unto others...' Thanks for all you do, keep up the good work." – Paid-up subscriber Mark N.
 
 Dear Porter: That was a great Digest. The thoughts about Arnie would be great for raising any kid. None of our kids are really surrounded by the best people they can find, but that isn't because they haven't tried. They all have jobs with other employers and I constantly remind them to work hard and impress the folks who are really the smartest in the company and impress them. I spent many years in the military always trying to find people to work for me who were better at what they did than I was. It wasn't that difficult since many in fact were better.
 
"As usual, I commend you for your advice and counsel. You can spend as much time in the Digests (or at other times) as you want talking about personal success and how it was done. Anyone who thinks they can't benefit from these experiences doesn't understand the rigors of life. Frankly I even miss hearing about the fishing experiences on Stansberry Radio.
 
"The creation of Stansberry Asset Management is not a surprise to me. When you go public, it won't be a surprise either. Success breeds success. The Erez interview of some months ago was one of the best I have ever heard on Stansberry Radio. Not a surprise that you hired him to run the show. I joined the mailing list. I don't have a million dollars to invest, but I still want to know what is going on and experience a connection with this development.
 
"There are times when I wish I had a professional manager to handle my portfolio. With 'many' small positions, most of which are at 1-2% (a couple at 5%), I am 'incredibly' well diversified and reasonably well hedged, but there is also risk in doing that, not only because of time to oversee but reacting to TradeStops properly and promptly. With all your various newsletter recommendations, I feel like I am managing a small mutual, but I am the only investor! As a result, I am probably the perfect candidate for a manager but lack the resources. I look forward to learning how this whole effort progresses and personally wish you all the best possible success with it. We the subscribers will be the benefactors ultimately.
 
"By the way, great job on America 2020. I am currently reading it with great interest. As compilations go, it is one of the best. Thanks again for your fantastic investing service." – Paid-up subscriber Terry S.
 
Regards,
 
Justin Brill
Delray Beach, Florida
May 18, 2015

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