Originally published by Chamber of Merchants
"The Patron" is a new series by Chamber of Merchants that follows a beginner investor trying to turn $10,000 in to $20,000 in less than a year. Click here to read The Patron's first post.
I used to watch soap operas back in the day, I’d know the characters by name and live within the short moments they starred on TV.
Now it’s the markets, Bloomberg, articles, analysts, commentators and politicians! (Some of whom play the villain)
Before I become too distracted with soap opera analogies, the question I should be asking is, “what has been happening in my account?”
Honestly, I’ve been ignoring my account (ok, I check it maybe twice a day)
From my original $10,000 investment, I have seen the account dip into the red and it recently sat well below the $9,000 marker. This translates to a loss of around 14% since I began…although the difference in my account is negative, the difference in me is positive, as I’m now perfectly calm.
The sea may be rough, but this captain has docked his ship for a short while and is not even looking to sell out one bit.
“History may not repeat itself, but it rhymes”
Currently we are looking at the lowest interest rates the world has experienced in the past 5000 years!
Let that sink in a little, while I sip my tea.
I’m starting to wake up and read the stats for myself, while looking at the graphs. (It does not look positive for the dollar and other currencies alike)
Since when did quantitative easing become an accepted tool or normal practice in the financial world?
I remember watching TV 7-8 years ago, and some suit wearing officials had difficult questions about the possible dangers that could come with QE (numbers are being added to keep track of how many times they do this)…I remember there were promises made about “just this time”, “just until we fix it and then we’ll buy it all back.”
The rate at which the dollar is heading for a crash is scary, yet, having said that, its no different to other currencies from the past. I’m reminded of a quote from Mark Twain, “History may not repeat itself, but it rhymes”
If you’re like me, and suddenly feel a lack of confidence in the monetary system we live in, then perhaps you’re also like me and have invested in precious metals, knowing the day will soon come when it becomes the safe (and for me, profitable) haven.
Soap Operas are meant to keep us hooked, they keep us in suspense using drama and shock.
Since I’ve taken my position in precious metal stocks, I’ve been hooked and I can’t help switch on Bloomberg and grab my daily dose of shock and drama.
Yours Faithfully
The Patron