Doug Casey on Crisis Investing in Brazil

Editors Note from Dudley Pierce Baker http://CommonStockWarrants.com “One of my top picks has a Brazilian gold property which should be in production in 2018. The shares and warrants have been under pressure recently but I see that potential for outrageous gains of 1,000%, 2,000% or more in the next few years.”   Justin’s note: Brazil is in crisis once again. This time, Brazil’s president, Michel Temer, has been accused of corruption, bribery, and obstruction of justice. When news of this scandal broke, it triggered a huge selloff in Brazilian stocks. The iShares MSCI Brazil Capped ETF (EWZ), which tracks Brazil’s stock market, plummeted 18% in one day. It was the fund’s worst day since the 2008 financial crisis. Most investors now want nothing to do with Brazilian stocks. But we’re not like most investors. We understand crises can actually lead to huge moneymaking opportunities. Casey Research founder Doug Casey has made millions investing in crisis-stricken markets like Brazil. So I immediately called up Doug after I read this story. Below is a transcript of our conversation… Justin Spittler: Doug, what do you make of Brazil’s latest crisis? Do you see a crisis investing opportunity shaping up there? Doug Casey: I’m not sure I’m interested in putting money there right now. But I am interested in Brazil. As a matter of fact, as I speak to you right now, I’m out in the countryside of Uruguay, next door to Brazil. All these Latin American countries, quite frankly, are very problematical. They’re … Continue reading

Doug Casey’s Top Two Ways to Store Wealth Abroad

Doug Casey’s Top Two Ways to Store Wealth Abroad By Nick Giambruno Nick Giambruno: For centuries, wealthy people have used international diversification to protect their savings and themselves from out-of-control governments. Now, thanks to modern technology, anyone can implement similar strategies. Doug, I’d like to discuss some of the basic ways regular people can internationally diversify their savings. For an American, what’s the difference between having a bank account at Bank of America and having a foreign bank account? Doug Casey: I’d say there is possibly all the difference in the world. The entire world’s banking system today is shaky, but if you go international, you can find much more solid banks than those that we have here in the US. That’s important, but beyond that, you’ve got to diversify your political risk. And if you have your bank account in a US bank, it’s eligible to being seized by any number of government agencies or by a frivolous lawsuit. So besides finding a more solid bank, by having your liquid assets in a different political jurisdiction you insulate yourself from a lot of other risks as well. Nick Giambruno: Moving some of your savings abroad also allows you to preempt capital controls (restrictions on moving money out of the country) and the destructive measures that always follow. Doug Casey: This is a very serious consideration. When the going gets tough, governments never control themselves, but they do try to control their subjects. It’s likely that the US is going … Continue reading

Get Ready for the Biggest Gold Move in Years

April 19, 2017 Justin Spittler Research Analyst     Make the trend your friend. Every investor has heard this advice. It means that you should swim with the tide, not against it. In other words, don’t buy stocks that are in free fall. And don’t bet against stocks that are soaring. After all, a trend in motion tends to stay in motion. With that said, bull markets don’t last forever. The same goes for bear markets. This is important because you can make an absolute fortune by buying an asset as it exits a bear market and enters a new bull market. One of the safest and most proven ways to do this is to buy an asset right after it “breaks out” of a downtrend. Just look at what uranium stocks did when they broke out of a multi-year downtrend in December. The Global X Uranium ETF (URA), which holds 22 uranium stocks, jumped 45% over the next couple months. Here’s another example. This chart shows the performance of the VanEck Vectors Coal ETF (KOL) since the start of 2011. KOL invests in 27 coal stocks. Like uranium stocks, coal stocks were in a downtrend for years. But they broke out of that last September. Since then, the average coal stock is up 35%. • These are big gains for such short periods… Unfortunately, most investors never take advantage of these situations. That’s because they don’t realize that an asset’s broken out until it’s already up 30%…40%…or even 50%. By then, it’s too … Continue reading

This Sector Is Set to Deliver 20-to-1 Returns… and That’s Just From the “Bad” Companies

This Sector Is Set to Deliver 20-to-1 Returns… and That’s Just From the “Bad” Companies By Nick Giambruno “It was the single most important financial event of my career.” That’s what my friend Rick Rule of Sprott Global recently told me of his experience in the uranium market. Rick was referring to Paladin Energy, a uranium company that leaped from one penny to $10 per share during uranium’s last bull market. That’s a 1,000-fold increase. In other words, a $1,000 investment could have exploded into $1 million. Even the worst-performing companies in the uranium sector delivered 20-to-1 returns. Uranium can deliver these almost unbelievable returns because of unique supply-and-demand quirks that create colossal bull and bear markets. Here’s a quick rundown… and a closer look at how uranium’s coming bull market could hand you these kinds of life-altering profits. The 1950s Uranium Bull Market Uranium cycled through its first bull market in the 1950s. This bull was mainly driven by the nuclear arms race between the US and the Soviet Union. Back then, the only practical way an investor could get exposure was through uranium exploration companies trading on small regional stock exchanges, like the one in Salt Lake City (which closed in 1986). Those who did made a bundle. The Late 1970s Uranium Bull Market The uranium price increased more than tenfold during this bull market… from $3 to $43. Some uranium stocks shot up by a factor of 100. Greater nuclear power use was the main driver. It … Continue reading

Doug Casey on the Single Wisest Thing You Can Do With Your Money

    Published February 25, 2017 Editor’s note: Over the next two days, we’re featuring timeless wisdom from Casey Research founder Doug Casey. Today, he shares the No. 1 thing you can do with your money to take control of your life and prosper in the years to come.     There’s a great deal more to becoming rich than buying the right investments and hoping for the best. The most important element in your strategy to win the battle for investment survival is your own psychology. You’ve heard that your attitude helps your health and your golf score; it’ll also improve your earning power. It’s not enough to liquidate your past financial mistakes. It’s more important to liquidate counterproductive attitudes, approaches, and methods of dealing with problems. The results that someone gets in life are an indication of how sound his approach toward life is. A sound philosophy of life gives good results. People with chaotic, unproductive, unhappy lives usually don’t have anyone to blame but themselves. They rarely have a strategy for living and thus have no foundation on which to build a strategy for investing. There’s plenty of good advice available on the subject. Marcus Aurelius’ Meditations, Ben Franklin’s autobiography, Norman Vincent Peale’s Power of Positive Thinking, Frank Bettger’s How I Raised Myself from Failure to Success in Selling, and Maxwell Maltz’s Psycho-Cybernetics are all helpful. One of the important things about the Greater Depression is that it will give you a chance to put your philosophy of life to the test. Almost … Continue reading

Donald Trump, Saudi Arabia, and the Petrodollar

Donald Trump, Saudi Arabia, and the Petrodollar By Nick Giambruno February 22, 2017 Obama pulled out his veto pen 12 times during his presidency. Congress only overrode him once… In late 2016, Obama vetoed the Justice Against Sponsors of Terrorism Act (JASTA). The bill would allow 9/11 victims to sue Saudi Arabia in US courts. With only months left in office, Obama wasn’t worried about the political price of opposing the bill. It was worth protecting Saudi Arabia and the petrodollar system, which underpins the US dollar’s role as the world’s premier currency. Congress didn’t see it that way though. Those up for reelection couldn’t afford to side with Saudi Arabia over US victims. So Congress voted to override Obama’s veto, and JASTA became the law of the land. The Saudis, quite correctly, see this as a huge threat. If they can be sued in US courts, their vast holdings of US assets are at risk of being frozen or seized. The Saudi foreign minister promptly threatened to sell all of the country’s US assets. Basically, Saudi Arabia was threatening to rip up the petrodollar arrangement, which underpins the US dollar’s role as the world’s premier currency. Donald Trump and the Saudis Unlike every president since the petrodollar’s birth, Donald Trump is openly hostile to Saudi Arabia. Recently he put this out on Twitter: Dopey Prince @Alwaleed_Talal wants to control our U.S. politicians with daddy’s money. Can’t do it when I get elected. The dopey prince that Trump is referring … Continue reading

Northern Dynasty | Valentine’s Day Massacre 2017

February 15, 2017 Dudley Pierce Baker http://CommonStockWarrants.com   Northern Dynasty Minerals, NDM.TO and NAK, has treated shareholders and warrant holders extremely well over the last 6 months or so with gains of 500% and much more for the stock warrants of up to 2,000%. That all changed on February 14, 2017, Valentine’s Day. Briefly, due to a hack job by a New York based hedge fund and short seller,  the shares and warrants plunged at one time around 40% before slightly recovering. On February 15th the shares and warrants made some very modest gains. Below, I am sharing with you the analysis of our friends at The Casey Report for the details and particulars of what happened. But first, I found interesting that while the shares were plunging on Valentine’s Day, two of the company’s insiders were actually buying shares in the open market. Insider Reporting: On February 14th, Northern Dynasty Minerals Director Steven Ashby Decker acquired 20,000 Common Shares on a direct ownership basis at a price of US$2.435 through the public market on February 14th, 2017. This represents a $63,763 investment into the company’s shares and an account share holdings change of 18.2%. In addition, Director Desmond Balakrishnan acquired 7,900 Common Shares on a direct ownership basis at a price of $3.000 through the public market. This represents a $23,700 investment into the company’s shares and an account share holdings change of greater than 100%. The question now for investors is whether Northern Dynasty’s shares or stock warrants … Continue reading

How to Double Your Money 94% of the Time…

How to Double Your Money 94% of the Time… By Justin Spittler Editor’s note: Today, we’re taking a break from our usual commentary to share a must-read piece with you. In the essay below, International Speculator editor Louis James pulls the curtain back on a money-making phenomenon. As you’ll see, this strategy has generated average gains of 133%. More impressively, it works almost 100% of the time. This is the first time we’ve shared this powerful secret with our readers. We hope you find this essay as eye-opening as we did. What would you say if I told you of an investment strategy that more than doubled your money within two years, 94% of the time? First, a confession. I’m about to tell you something that’s rather obvious. The phenomenon is well known. Despite that, I never did the math before. To my knowledge, no one has ever bothered, but that’s no excuse. So, while I knew it was a factor—I’ve even made recommendations to profit from it—I didn’t realize just how powerful this approach is at generating maximum gains for minimum risk. Albert Einstein was famous for urging us to question everything. He once said, “I have no special talents. I am only passionately curious.” The strategy I’m about to describe has been “hiding in plain sight.” Doug Casey told me about it when I first started working for Casey Research. But I never asked: “What’s the average gain?” My apologies. Now, let me explain. Do you remember the … Continue reading

Doug Casey on the Coming Collapse of the World’s Biggest Economy

Doug Casey on the Coming Collapse of the World’s Biggest Economy By Nick Giambruno Nick Giambruno: The entire European Union is looking shakier by the day. Donald Trump’s victory—which shocked Europe’s political and media elite—gives Eurosceptic parties, the Continent’s populists, even more political rocket fuel. What’s your take? Doug Casey: The Social Democratic, Christian Democratic, Socialist, Communist, and similar parties have ruled Europe since the end of World War 2. They’re all pretty similar in that they promote massive welfare benefits, strong labor unions, large state bureaucracies, very high taxes, strict regulations, and an atmosphere of Cultural Marxism. Then, every few generations, the voters react and install a “fascist” regime. These keep most of the socialist characteristics, but tend to be supported by, and friendly to, Big Business. That, and they add on nationalism, xenophobia, and militarism. The last time this happened was in the 1930s. In those days it was spurred by the Great Depression. This time it will be spurred by the Greater Depression, plus massive waves of Muslim migrants from the Near East and Africa. So I expect to see more neo-fascist political parties everywhere. Oddly, the Europeans can’t seem to imagine a libertarian alternative of private charities, limited government, minimal taxes, an unregulated economy, and intellectual/psychological freedom. It’s another reason the Continent is a sinking ship. Incidentally, people think of these countries—Italy, France, Germany, and so on—as though they are fixtures in the cosmos. But they aren’t. In their current forms, they’re all newcomers on the stage … Continue reading

This Super Bubble Is About to Burst… Here’s How to Make Huge Profits

This Super Bubble Is About to Burst… Here’s How to Make Huge Profits By Nick Giambruno Italian government bonds are in a super bubble. They are primed to collapse soon. Italy has one of the most indebted governments in the world. It’s borrowed over $2.4 trillion, and its debt-to-GDP ratio is north of 130%. (For comparison, the US debt-to-GDP ratio is 104%.) But the situation is actually much worse. GDP measures a country’s economic output. However, it’s highly misleading. Mainstream economists count government spending as a positive when calculating GDP. A more honest approach would count government spending as a big negative. In Italy, government spending accounts for a whopping 50%-plus of GDP. A more accurate debt-to-GDP ratio would exclude government spending from economic output. I suspect that figure would reveal the Italian government’s hopeless insolvency. I don’t see how it’s possible for the Italian government to extract enough in taxes from the productive part of the economy to ever pay back what it’s borrowed. Yet Italian government bonds are trading near record-low yields. It’s a bizarre and perverse situation. Over a $1 trillion worth of Italian bonds actually have negative yields. That’s completely insane. Given the huge risks associated with lending money to the bankrupt Italian government, the yields on Italian sovereign bonds should be near record highs, not record lows. Source: Zero Hedge Italian government bonds are, without a doubt, in super-bubble territory. It won’t be long before a pin pricks it and… pop. A critical vote in … Continue reading