Coastal Dreaming

A few months ago I predicted the Dow Jones Industrials Average (DJIA) would be below 10,000 before the end of the year. How did I know this was going to happen? Robert Kiyosaki and Donald Trump told me. For anyone worried their financial lives are now, or may be in the future, in peril then I recommend two books. Actually I recommend these two books to everyone.

First, I recommend, Why We Want You To Be Rich, by Donald Trump and Robert Kiyosaki. On page 74 Robert lays down the truth of our country’s financial situation.

1. America’s trade deficit is increasing dramatically.
2. The U.S. national debt from 2000 to 2005 doubled. The Bush White House borrowed more money than all of the other previous administrations COMBINED! Over 1 Trillion.
3. The dollar is falling: Our country has the printing press on full-time. (see related post on currency stability)
4. Baby Boomers are preparing to retire and they need money.
5. Our population relies on entitlement programs.
6. An increase in oil prices will cause worldwide inflation.
7. Tax breaks for the rich. The rich make the rules.

One he left out I will include;

(8) The Iraq War is costing Approx. 12 BILLION a month

The Iraq War has already cost nearly 600 Billion

The Second Book is, The Prophecy, by Robert Kiyosaki. This book explains in detail how the middle class and the baby boomer generation are being set up for a financial slaughter and mutual funds are the vehicle used to execute financial genocide. Just as the Social Security system is set up as a large Ponzi Scheme so are Mutual Funds. On page 54 he talks about this concept. As retirees are “required” to withdraw from their retirement plans when they turn 70 ½ the Equity markets will need younger workers to put money into the markets, because if more sellers then buyers exist in any market, than the market goes down. Will there be enough working class to “buy” into the equity markets when the baby boomers are selling out of it? What happens when the Baby Boomer Generation wants the retirement promised to them and they sell their shares to travel or buy their vacation home?

Look at this graph of the Dow Jones Industrials Average since 1928. When I look at this graph I see the natural progression of the DJIA moving along steadily until about 1986 and then it rockets up. Is it possible that the market the last 20 years was an anomaly? Is it possible that the DJIA could fall below 3000 again? Is it possible that the market created in the last 20 years is a reaction to a false sense of supply? Is it possible that Voodoo Economics created something that can’t be sustained?

Please do yourselves a favor and read these two books. The concepts need not be alarmist nor conspiracy, nor paranoia, nor doom. The books allow for awareness and thought and education.

Do not think your stock broker or mutual funds have your best interest? Some do, most don’t. It is YOUR duty to protect your money, know your investments, and understand what you invest in. It is your RIGHT to invest your own money, even your IRA or 401-K money! Break free from the bondages of commission based investments and unleash the power of your own IRA. Educate yourself about self-directed IRA and the custodian companies available.

• American Pension Services
• Entrust
• Equity Trust
• Millennium Trust Company

Take a few minutes to check the websites of these companies or any other. You don’t know what you don’t know. It might be a nice place to start.

Oh yea, if you believe want to truly diversify out of the equity markets into international real estate let us know and we can help.

Related Posts:

• The Dow is Falling
• Stocks or Offshore Real Estate - Whats more Risky?

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Tags: dow jones, IRA, self directed, stocks, wealth