“Invest in seven ventures, yes, in eight; you do not know what disaster may come upon the land.” (Ecclesiastes 11:2, NIV)
If you are aware of the Four Signposts, and the potential economic disasters that the Second Signpost may bring, you should be preparing. I’ve written about preparation here and here.
Physical preparations are many. They would include food storage and a garden, solar power or a well. Physical preparation can also include learning a new craft like gunsmithing, farming, or weaving, etc., and storing up barterable items like ammo.
But in financial preparation it seems that choices are few. What else is there beside precious metals and maybe a few acres of usable land? And as the wisest man who ever lived said in the verse above, it is always good to diversify, especially to hedge against hard times. As it so happens, if you have a store of wealth – a portfolio of sorts – there is an additional venue besides precious metals in which to diversify.
As on everything, prayer is required. Is God telling you to be a Joseph? Precious metals will help if the economy in the area in which you live has broken down. Silver is good for barter and things like groceries. Gold will be good for larger purchases.
But if the economy of the area in which you live is still working, i.e. there is still some semblance of banking, but the dollar is on its way out and losing value in a big way, there is an additional place to put wealth in addition to precious metals.
Crash Proof and Euro Pacific Capital
Peter Schiff wrote a book back before the last financial crisis in 2008, saying a great financial crisis was on its way. And of course it happened. In his book Crash Proof (and the updated Crash Proof 2.0), he outlined a financial strategy that would be immensely helpful for the time the dollar crashes. He founded Euro Pacific Capital to do just what his book says.
He proposed in his book that Americans should invest in, besides precious metals, foreign stocks from countries whose currencies would be strong, and are high-dividend yielding stocks in “defensive” sectors. If you are unfamiliar with the term, “defensive” means those basic areas that would do well even in a depression like utilities or energy or food.
Preserving an Income Stream
The idea is if you had maybe $1,000 of dividends this year from foreign stocks in countries with strong currencies, then the US Dollar falls to say half its value against the other stronger currencies, the dividends being produced in those stronger currencies would grow to $2,000 in a year. It’s not that you would get richer, because if the dollar falls by half than prices are double, but your income is preserved because your income keeps up with prices due to the falling US Dollar. If the world economy is still limping along after the Second Signpost hits, and not altogether gone (a possibility either way) then this investment strategy could help.
Euro Pacific’s Services
Euro Pacific buys the foreign stocks for you at those countries’ stock markets (not ADRs which are receipts bought by American banks and will disappear if American banks go under!), converts all dividends back into US Dollars for your use, and for IRS reporting purposes, is NOT an offshore bank account so it does not need to be reported as such.
Euro Pacific offers three types of accounts and you can have more than one of them. They are –
1) Mutual fund of foreign dividend-yielding stocks. Minimum is $25k;
2) Managed account where they buy the stocks and manage the portfolio per one of three strategies that you choose (growth, dividend income, or both); minimum here is $50k or $250k depending on type of account;
3) Non-managed account where you decide what stocks from which sectors and countries to get. They will help you with candidates and lists but you must do your research and pick which ones (I find the Reuters site has good info on all these foreign stocks). The minimum on this account is estimated at $100k.
Buying stocks with Euro Pacific is not like buying on E-Trade. Purchasing the stocks intended for an account can cost $1,000 to 2,000 to set it up. It’s not cheap, but their services can make all the difference to you and your family. And now, not later is the time to act for when the dollar falls any investing you make will be at a loss.
My wife and I invest with Euro Pacific. Why am I telling you about all this? I receive no recompense from Euro Pacific. Of all the strategies I have seen in these kinds of books, Crash Proof (2.0) is the only one I think is applicable and doable if you have the money. It offers a preserved income stream if circumstances allow.
I offer this info because if God is telling you to do something like this then here is a real path to do so.
Euro Pacific is a smaller firm with a few branches. Chris Rieger runs the Newport Beach, CA office. His number is 1-800-727-7922, ext. 159. Tell him Mark Davidson sent you and he should answer your questions.
He and I had a conversation not too long ago. He says Peter Schiff is the lone voice warning people they should prepare for an awful economic depression coming and that he knows he is one of the few voices among the many that are saying everything is fine. Sounds like the situation I’m in with the Four Signposts.
You of course should do your own due diligence, but I recommend stocks from Canada, Australia, China, Hong Kong, Singapore, Switzerland and Norway. All these countries should do fine come the Second Signpost. I stay away from the Euro zone and Japan because of the weak position they will be in when the Second Signpost hits. I stay away from Russia and Brazil because of the rampant corruption. Dividends paid out have been 5-6% annually for my family, but have gone down in the last year in the energy sector because of the depressed prices of oil. However, with the Second Signpost sending oil prices sky high, I look to the oil and energy sector to produce dividends like never seen before. Again, do your own due diligence.
Long time readers know that I have said many times, “get out of the dollar!” I believe investing in foreign dividend yielding stocks with Euro Pacific is an excellent venue to do just that: get out of the dollar.
As always pray about it.
Categories: Preparation, The Four Signposts
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