PowerShares DB US Dollar Index Bearish (UDN)

[TOUCAN]

Billionaires Dump Stocks. Prepare for the Unthinkable

(READ the BLUE at bottom talks about UDN)

(good information, please note this is also an advertisement for a free book called "Aftershock") ... Watch Video @ http://w3.newsmax.com/a/aftershockb/video47.cfm?promo_code=FB1C-1
http://goingglobaleastmeetswest.blogspot.com/2000/08/link-snip.html

Transcript .. Snip ..

"Foreign currencies are a great play right now for investors. I like the Canadian dollar, Swiss franc, and the Nordic currencies, such as the Norwegian krone. Trading currencies directly can be pretty risky so that isn't for everybody"

And Snip ..

But let's focus on solutions now.

What should our viewers be doing right now to stay safe?

Bob:

First and foremost, I advise people to stay away from real estate. Real estate has not hit bottom.

Higher inflation, mortgage rates, and unemployment will suffocate the few breaths remaining in the housing market.

In my opinion, strictly from a financial standpoint, people should consider selling their homes while they still have a chance, and rent instead.

But I understand that's not practical for most people.

And, the emotional attachment to a home goes beyond financial matters.

So if you are stuck in an adjustable rate loan, I advise you to immediately refinance into a fixed rate. And I mean, right now.

Don't put this off until tomorrow.

John:
Should people staying in their homes, who have a fixed-rate mortgage, look to pay it down faster?

Bob:
Absolutely not.

Higher inflation in the future means you will be repaying a cheaper mortgage since the dollar will be weaker.

So stick to the minimum payment for now. Use that extra money for shrewd investments and paying down more important debt.

John:
What about non-real estate loans?

Bob:
The most important one is your car loan. Especially if you are still working.

An average car loan for Americans now is about $12,600.

So it's not a small chunk of change.

But a repossessed car is no good for you now, or when you need to secure financing for another one in the future.

John:
What about credit cards?

Bob:
Well many credit cards are simply adjustable-rate loans.

Even the fixed-rate credit cards have loopholes that allow them to hike your rates.

So when interest rates rise, so will the rates on many of the cards you are holding.

So pay these off as soon as possible.

If you take my advice and pay just the minimum on your mortgage now, you can use the newfound extra money to pay your credit cards down faster.

John:
How should our viewers approach insurance?

Bob:
Good topic for this discussion.

Once inflation hits 10 percent, all life insurance policies will be susceptible to very big losses due to their heavy exposure to long-term bonds, commercial real estate, and stocks.

Some insurance companies could even crumble.

So given our current situation, in my opinion, it does not make good financial sense to own whole life insurance.

If you do, you may be able to take out a lump sum payment now.

This will be much more valuable to you to properly invest now, than when inflation really kicks in.

Check to see your policy details on that though.

You can also focus on term life insurance instead, since it's much cheaper.

John:
It seems people are putting off retirement until later and later in life.

Wells Fargo recently released a survey that says people in their 50s on average only have $29,000 saved up for retirement.

And with Social Security, Medicare, and the unreported tens of trillions of dollars in future costs pressing down on our economy, the safety nets many have relied on may not be there in the years ahead.

So for our viewers, who may still be working and do not have enough saved up for a comfortable retirement, if we have a serious spike in unemployment, what careers will be the safest in the years ahead?

Bob:
This is truly a sad epidemic.

Given the pullback in income growth as well as other economic factors like inflation and a weakened dollar, the retirement age would now have to be raised to 73 for average Americans just to maintain the same standard of living as in the 1940s.

Since the average life expectancy is currently about 78, millions will now have to work until they drop dead, instead of enjoying their golden years.
Plus, Washington seems incapable of having an adult conversation on the entitlement issue.

So I personally see people working later and later into their lives, because they have no other choice.

However, jobs will be tight, especially for people over 55.

So for those seeking job security during the coming crisis, the necessities sector is the place to be.

This is composed primarily of healthcare, education, utilities, basic food, basic clothing, and government services.

Unfortunately, these aren't the highest paying jobs.

John:
Whether people are still employed or living off their investments, they are worried about the government taxing away more of their money.

So what can our viewers do to help protect themselves from higher taxes?

Bob:
Well, we need to see how this one will play out, and obviously our viewers should really build a specific strategy with their accountants.

But, I'd quickly recommend looking into estate planning, regardless of your net worth.

Because for tax reasons, giving gifts to your children and grandchildren now can be very beneficial.

And, you can get creative here by selling assets to buy gold to gift to your heirs now as opposed to in your will.

This will be much more valuable than cash or real estate when inflation hits hard.

John:
That's a good segue into investing advice.

So it seems you are a fan of gold still, even though it's been soaring in value.

Bob:
Yes!

I'm not a "Gold Bug" by any means. But I know what investments are right for different conditions.

Gold will continue to be a favorite safe haven for countries across the globe.

Right now, only 10 percent of the world's total gold is purchased by the United States.

Which puts us right in line with Turkey.

(more about gold .. refer to article)

John:
What about other investments?

Bob:
Other precious metals like silver and even platinum are good choices over the long run.

Until serious inflation hits, short-term bonds are OK.

After inflation really sets in, you will need to keep cash in short-term investments such as money markets, TIPS, and Treasurys.

Their low returns don't exactly make them very attractive, but they will protect you against inflation much better than longer-term debt.

I highly advise our viewers to stay away from long-term bonds.

Let me stress that again. Avoid long-term, government bonds.

John:
What about some unconventional investments our viewers may not have considered before?

Bob:
Foreign currencies are a great play right now for investors.

I like the Canadian dollar, Swiss franc, and the Nordic currencies, such as the Norwegian krone.

Trading currencies directly can be pretty risky so that isn't for everybody.

But you can buy ETFs on the major foreign currencies, like the euro, yen, Canadian dollar, and Swiss franc.

You'll want to hold them as longer term investments that'll appreciate as the dollar continues to fall.

You can actually buy an ETF called the UDN that trades all of the currencies in the US Dollar index against our currency.

So the weaker the dollar, the higher the UDN goes up. And, the more money you make. READ HERE: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=78215806

John:
And what about advice for our more seasoned investors?

Bob:
A very large portion of the new edition of "Aftershock" addresses tips for investors of all shapes and sizes.

For example, the more-experienced investors may find a great deal of benefit reading up on what kinds of options we think are suitable for profiting during the days ahead.

Or how to properly take advantage of U.S. agricultural commodities.

Because when the dollar weakens, lots of countries will be buying our commodities with their stronger currencies.

"Aftershock" is perfectly suited for everybody, because along with all of these great investing tips, we also offer advice for real estate, personal finance, money management safe retirement, and even our viewers' careers.

We don't leave any stones unturned.

John:
I couldn't agree with you more Bob.

We've just scratched the very surface in this interview. These are all very serious topics that need more time than we have today to truly go through.

Bob, you are giving our viewers an incredible opportunity to build an unbreakable wall around their wealth that will protect them when the economy hits the very rough times you forecast in the new edition of "Aftershock."