HELPING PHYSICIANS ATTAIN FINANCIAL SECURITY
By Robert M. Doroghazi, M.D., F.A.C.C.
For some time now the primary force in our economy has been deflation. Mr. Bernanke has said all along that he will print whatever amount of money required to stave off a deflationary depression similar to the Great Depression of the 1930s.
I think the market said today that he will. The dollar index tanked, the DJIA was up 193 points, gold was up more than $25 to 1340 and silver was up a cool buck. People are running to the exits to exchange their rapidly depreciating dollars for real assets, such as the precious metals and stocks. Right now, the dollar is the ugliest of the fiat currencies. But in the end, all paper currencies are suspect.
Here is what I see happening.
1) The economy will really not improve (much). I don’t see how just printing money can create any jobs.
2) The stock market and other assets may go “up” in nominal terms, but won’t be “worth” any more because the value of the dollar is falling.
3) Gold is the only safe currency, the one that cannot be created by the printing press; that cannot be (easily) manipulated by the politicians.
But this is what you absolutely must understand. Even gold is not going up in value. It is merely the best way to preserve wealth, to preserve purchasing power. All paper currencies, unfortunately lead by the once-almighty dollar, are losing value.
I again recommend that the core of your entire investment portfolio be US-minted gold kept in your personal possession in the safe deposit box at the bank (over the years, Stephen Davidson at Blanchard & Co has given me good service. 888-830-2646). In your brokerage account, the precious metals can be owned via GLD, SLV, GDX, GDXJ, etc.
How much should you have in the precious metals?: In my opinion, as much as you are comfortable with. I suggest a minimum of 10%.
I think this whole terrible thing will end when; 1) we return to a gold/commodity-based currency, beyond the manipulation of the politicians, as we had until 1933 (our coins were copper, nickel, silver and gold) and 2) the Federal Reserve will become history.
RMD
When I took my clothes to the cleaners today, the man said “Doc, do you know the physician who owns the XXX restaurant”.
I said “I didn’t know a physician owned that restaurant, and I don’t know who it is. Are they still in business?”
He said “No, they’re closed”.
I said “I just don’t understand why some physicians think they can run a restaurant. I have yet to speak to a restaurateur who thinks they perform brain surgery. It is just another example of a stupid doctor investment”.
The owner perked up and said (to the other man) “See, that’s exactly what I just said. A restaurant is a stupid doctor investment”.
RMD comment: It seems that just about everybody knows that a restaurant is a stupid doctor investment—except the stupid doctors!!! Stick to medicine, and forget about opening a restaurant, or a bed and breakfast, or any store-front business, owning the next Kentucky Derby winner, or financing a Broadway play.
I will make the same offer that I made before: If you are thinking of opening a restaurant; give me a call. We can have supper at a nice restaurant (your treat) and I will
Site by Delta Systems powered by ExpressionEngine