Powayseller, Do you have plans to get into foreign currency, like the Swiss Franc? I’m interested in learning about the most cost effective way to buy foreign currency. Going to a big bank the best route?

I have no knowledge of how to buy currencies. My cousin works at a large german bank, and when I asked him how to buy euros, he suggested euro bonds.

So were do we buy euro bonds and swiss franc annuities?

Also, what are the considerations for a long-term investor, as far as the economy, that we should also consider? I’m looking for a country with low debt, strong exports, rising GDP, with a good economic policy (not the bubble-blathering fools like Bush and the Fed).

avidsaver – on the piggington home page, the lower right column is titled – other bubble bloggers – That is great stuff, and Barry Ritholtz from The Big Picture is one of the featured bloggers.

30% cash, 30% real estate, 10% gold, 30% stock

100% anything is speculation.

How do you figure that gold is overpriced? To match the 1980 peak (after inflation, of course), it would have to be over $2000. And the overall economic situation now is MUCH worse than it was then!

Remember, gold is the only money that is always acceptable, no matter what disasters are unfolding. That’s why central banks have held onto so much of it, even while telling us it is a “barbarous relic”.

Sorry, I don’t buy it (no pun intended). In my opinion, the risk in waiting for gold to go down to the mid 500’s is bigger than the risk in acquiring at least a partial position now, and then buying more on the dip if it occurs. The move above the 200 dma can also be corrected by the moving average coming up, not only by the price going down.

But of course it’s your money, so you have to make the decision. Just remember that these advisors can be wrong too, and they won’t help you if you get “priced out”.

Avid,

In addition to high quality bonds and euros, you should look in to stocks paying large dividends, large-cap equities in general, and alternative sectors that have been out of the spotlight.

Southern Copper, for example, has a dividend approaching 9%. While I believe we are in a bit of a commodity bubble, I think owning this stock could be very profitable because of the abnormally large dividend. One ETF play I like for this strategy is First Trust Morningstar Dividend Leaders fund (FDL). Morningstar has devised an interesting methodology whereby it allocates funds according to the amount of dividend every public company is paying. So you own nearly every public company in proporation to the size of the dividend. It has a 4-5% yield on average and should outperform the general market especially if it is flat or down.

Poweshares Dynamic Market (PWC) is also an interesting large cap choice. Powershares uses a proprietary model that screens out overvalued components of the S&P 500 so that what is left is what I call the Warren Buffet S&P. The problem with classic indexing (like the S&P 500) is that many of the companies enter the index simply because they are overvalued and their market capitalizations have risen so dramatically (due to speculation or whatever) that they have to be added. The Powershares model actively decreases this effect by overweighting the fundamentally undervalued parts of the index.

Lastly, I would look in to water resources. I think we will hear more and more about the scarcity of water as the world’s population grows. Many of the companies providing water and water services are growing very rapidly. Most importantly, there has been little focus on the sector (unlike oil and gold) and so there is less risk of a major capital flight should we enter a global recession. PHO is one of the best ways to play in the water market.

Best,
Mike