Fed Actions And How To Position Your Self Directed IRA

Mr. Bernanke just appeared in front of congress. What was very clear from his testimony is that the economy is weakening, jobs are not coming back, consumer spending is not materializing. This is clearly comforting. However, what’s ironic is that the markets actually rebounded because the implication is that the Fed will do more of what it does is print money out of thin air.

Additionally, it was clear from the line of questions is that the government is only interested in what new rules, regulations and programs that they can implement to punish the evil doers and help the helpless. In fact Mr Chuck Schumer a/k/a Mr Debt basically prodded Mr Bernanke to do more of what he does because the government clearly was not going to be able to do anything effective and substantial this year.

So, lets see if we understand this picture… the stock market likes it when they think our country and government will print and spend more and create more debt because that puts more fiat dollars into circulation. Additionally, our government tacitly admits that they are dysfunctional and ineffective and that the Fed, not under government control, should engage in more uncontrolled, unregulated printing and manipulation.

So how does this impact your self directed IRA

The fed now has the cover that it needs to engage in more manipulation. The economy is clearly tanking, and the government clearly endorses their actions. You absolutely have to be looking at the asset allocation in your self directed IRA and determining if your portfolio is properly hedged with precious metals and other counter cyclical assets that are way far away from Wall Street.

So, loginĀ  to your self directed IRA account now and start taking action. Time is of the essence.

Disclaimer:
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.

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