We hate to continue being such a doom and gloom type with the blog, but here we are half way through June and the economic news is not getting better – its getting worse.
- Greece – Greece is clearly heading for a breakup and even withdrawal from the European Union. Greece can’t even borrow money. They are starting to see large withdrawal of cash from banks and ATMs. Its happening. They are heading south and its not going to be pretty.
- Spain – Spain is at 25% unemployment. Spain is providing billions into their major banks to prevent a collapse.
- Northern Europe – not doing much better. They have debt that is north of 200% of GDP.
- China – Just dropped their interest rate. They have seen quarter over quarter declines in GDP – even their highly manipulated and suspect numbers.
- Major currency trader George Soros is moving more of his portfolio into Gold.
- The US – The jobs numbers are not improving. Deflation is rearing its head. These are clear signs that QE3 is coming
These are just some of the basic highlights of what is happening nationally and globally. The overall picture that we see is one of a slowing and degrading economy across the globe.
What these events likely mean for you and your self directed IRA:
- We are likely to see some deflationary effects short term. We are already seeing falling gas, and food prices mostly due to a decrease in demand.
- The stock market is likely to show a large sell off between now and the end of the year.
- The Fed is going to step in with the latest version of QE.
What to do with your self directed IRA
- Make sure that you have some gold and silver as your overall portfolio.
- Continue looking for those good real estate investment opportunities. Real estate may not be zooming, but it is nearing bottoms, and if the economy really tanks, rental properties will be very hot as people will be losing homes and they will need rental housing.
- Look for other non wall Street investment opportunities in the energy sector through private placements
- Look into a peer to peer lending opportunity by finding credible, reliable, credit worthy individuals needing loans
The information provided is for educational purposes only and are not a solicitation or offering of an investment, investment advice, or tax advice. You should consult with your tax, legal or financial advisor to determine the suitability of any investments made with a self directed IRA account.