As we at The Gold Report interviewed the investing stars in 2015, we saw some patterns develop. Whether it was in the wake of terror attacks, bond defaults, currencies (we are looking at you, Swiss Central Bank and China, decoupling from the euro and dollar respectively), political drama in the U.S., Iran, Turkey, Ukraine and Germany or the long-rumored Federal Reserve interest rate hike, the call seemed to be for patience. Crises come and go, cycles have their way with commodities and then move on only to return again under another headline. Smart investors, according to the experts we interviewed, know that the way to weather these storms is to be diversified. The way to profit from them is to be contrarian. Let’s take a stroll down memory lane and see what it tells us about the road ahead.
Currency War Fallout
Two perennial favorites, Rick Rule and Porter Stansberry, joined forces in a popular article in June to talk about protecting portfolios from currency wars. Rule called the currency wars “particularly good for precious metals, which have traditionally fared well in times of fear. It’s worth noting that precious metals, unlike most other commodities, respond to both greed and fear. But in my experience, fear has usually been the catalyst that begins to move precious metals higher.” He reiterated the need to invest when markets are down. “Equities markets and commodities markets generally are cyclical. A market that’s down by 90% is exactly 90% more attractive than it was before.”
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Stansberry was waiting for the …read more