Segment 1: Trading with the Greats SEGMENT BEGINS AT 00:41 A rules-based approach to trading has been economist/trading coach Jerry Robinson’s clarion call for many years. Listen as he shares seven important trading rules he has learned and adopted from three...
Your 2014 Financial Gameplan
Plus, an update for precious metals investors
Now is the Time to Get Financial Prepared!
As we reported on Friday, credit in China has exploded by $15.4 trillion, from $9 trillion to an astounding figure of $24 trillion — as much as the U.S. and Japanese banking systems combined. (In comparison, total U.S. bank assets grew by just $2.2 trillion during this same time period!) China’s monetary authorities are now attempting to rein in the world’s biggest credit bubble, which remains extremely vulnerable to higher borrowing costs. The astounding growth in Chinese credit in recent years is unprecedented, and easily qualifies as the largest bubble in world history. Meanwhile, hot money continues to flow out of China. Record amounts of wealthy Chinese investors are moving money out of the country into foreign asset classes (U.S. and European real estate, precious metals, etc.) What’s next? Perhaps a meaningful increase in oversight, or even a TARP-style bailout. But it is virtually impossible that China, and the world economy, will escape this monetary madness unscathed. It’s time to prepare.
The ultimate result from the massive debt and money printing across the globe is devastating impacts upon your savings, your retirement, and your job. That’s why we teach our Five Levels of Financial Freedom. We want to provide you with a financial plan that will hold up under all different circumstances, even circumstances we cannot foresee right now.
What ‘Level’ Are You in Your Financial Plan?
Over the next five weeks, I am going to cover each of the Five Levels of Financial Freedom.
Here is a brief overview of Level One and its components:
It is my belief that money, and our use of it, represents a divine test of our character. If we begin creating a comprehensive financial plan without first understanding what money truly represents, we risk opening ourselves up to a life of deception. For this reason, I believe that the foundation of every believer’s financial plan should be a Charitable Giving Plan.
Just as it is nearly impossible to successfully navigate a sea vessel without a map and an understanding of how coordinates work, it is likewise very difficult for us as individuals to successfully give money the way that we may want to without first mapping out a charitable giving strategy.
While creating a Charitable Giving Plan may sound cumbersome, it is not a difficult process. However, it will require you to closely examine what is really important in your life. Often, what we believe to be important to us, and what is actually important to us, can be two completely different things.
Your next action step on your journey to financial freedom is to create a “Go” bag. What exactly is a “Go” bag? A “Go” bag is any bag, like a backpack or duffel bag, that is light enough to carry, yet large enough to contain all of life’s necessities for at least three days. It contains items that you would need if you were forced to evacuate your home or community in the event of an emergency.
The Go bag, also known as a “bug-out” bag, is something that you will create with the hopes of never needing to use. Natural disasters, biological or chemical attacks by terrorists, or a wildfire are just a few examples of the potentially devastating events that can happen in the blink of an eye.
For some, stocking up on food and water may sound a bit alarmist. If that describes you, I would urge you to reconsider. We live in very uncertain times. All it would take is one major hiccup in the national food supply chain to create mass hysteria and hoarding. In addition, relatively few Americans today produce any of their own food.
When I first started trying to save a percentage of my income, I became very easily discouraged. Something would come up every month to prevent me from putting money back in reserve. It was not until I learned about something that I now call the Profit Principle that I truly became motivated to save money.
So what is the “Profit Principle?” Let me explain.
Several years ago, while reading through the Book of Proverbs, a verse literally jumped off the page. Has that ever happened to you? The verse that caught my eye was Proverbs 14:23. It says: “In all labor there is profit: but the talk of the lips tendeth only to penury” (ASV).
In particular, the phrase “In all labor there is profit” kept rolling around in my mind. I was aware that the definition of the word “profit” was essentially the amount of income left over after expenses. It was at that moment that I discovered the Profit Principle.
The Profit Principle simply says this: An individual’s profit from his labor or work is equal to the amount of money saved.
In mathematical terms, it’s PROFIT = SAVINGS.
The Profit Principle literally blew my mind. I realized that each month that I did not save money from my paycheck was a month when I did not earn a profit from my labor!
Suddenly, I recognized that I was going to work at my job every single day for zero profit! Who in their right mind would do that?
Apparently I did.
After you decide that it is time to start earning a profit from your labor, the next step is to: determine your desired monthly profit rate.
Now that you have determined your profit (savings) rate, its time to open a savings account and begin filling it up with cash. Your two immediate goals now are to:
1) Open a savings account
2) Accumulate 2 months of your gross income in savings.
Later, in Level Three, you will be increasing this savings amount from two months of gross income to six months. Additionally in Level Three, you will be introduced to our savings diversification strategies that include precious metals and stable foreign currencies. For now, however, just focus on building two months your gross income in liquid savings.
Tom Cloud – Precious Metals Advisor
Tom Cloud: “There’s been an interesting study put out by Bert Dohmen. Bert has spoken all over the world. He spoke in December at the LA conference and presented his case. This is not a gold person. This is a cycle person that looks at cycles. He showed that over the last 500 years, gold has a 20 year cycle down and a 30 year cycle up. We are 13 years into that cycle right now, and what has been interesting, over these 500 years, there have been about 19 different cycles. Gold will go up and then it will drop an average of 43% from its top to its bottom before it makes the big move.
Now, if we go back to what it did in 1981, gold had gone from $35 up to $400, and then dropped down 50% before it went up 8 times to $850 in March of 1981.
This market we’re in right now had a 37% decline since October of 2012, and we think it could decrease a little more, or we may have already seen it. But, here’s the important thing. The next move, we think, will be 8 times up, which will put it around $10,000.” Listen for the full report or Read/Print the audio transcript.
Precious Metals Investing 101 – Free Educational Resources
Next, Jennifer Robinson is here to update our FTM Insiders on Trigger Trading activity for the past two weeks. We sold seven positions, were stopped out of one stock, currently have four stocks in play (including DAL up 6.57% and PKG up 3.10%), and are awaiting the trigger price on eight stocks.
Recent Trigger Trade Performance
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Recent Podcasts by Jerry Robinson
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DISCLAIMER: The above trading ideas are from my own personal stock watchlist and are for educational and informational purposes only. They are NOT specific buy recommendations. Trading stocks is risky and you could lose all of your money. Trade at your own risk. Jerry Robinson is not an investment advisor. You should always consult a trusted financial services professional before making any financial or investment decisions. READ FULL DISCLAIMER.