My Daughter

My Daughter
Remember when you learned how to do this?

Monday, April 07, 2008

The writing on the wall

Resource scarcity puts tremendous pressure on markets around the globe by forcing the relative value of currency used to trade these commodity resources lower. Or more simply put, inflation causes your money to be worth less as prices increase.

This basic tenet of economic behavior set me to researching methods to avoid losing my money's value as inflation builds. As many readers will already understand, I believe that the inflationary pressure from global peak production of oil and it's subsequent decline, will be the major factor which drives economic trends world-wide in the years to come. As conventional oil becomes ever more expensive because of depletion, not only will oil and it's refined components (Diesel gasoline etc...) become more & more expensive as time passes, but so will all those products & services which rely heavily on transport fuels.

So that's the puzzle... how to protect your money from this predatory inflation?

In my research I have explored various investment vehicles as potential candidates for sheltering money including of course, oil futures. And while I still feel that oil (& gas) futures are excellent investment opportunities for the long trade, leveraging the volatility of the markets during inflationary expansion & contraction seemed prudent. By investing a certain percentage of the total investment package on assets which can benefit from inflationary volatility, I could provide shelter for longer-term investments which might be vulnerable to those same inflationary pressures.

That's what finally brought me to the Foreign Currency investment market.

Because a disciplined forex trader can use this inflationary instability to earn money trading on the relative value of currency pairs, it makes perfect sense to leverage what I consider to be a virtual certainty... (oil which gets more expensive every year), in the same way that oil futures offer excellent prices for what I also believe will be... very expensive oil.

And that's how I found my forex broker.

I looked for someone who didn't mince words, & understood without being told the importance of being highly disciplined and not getting greedy investing in the forex markets. That's the trick to making forex work... a trader who will protect investors even if an opportunity opens up which might be even more profitable, but violates the pre-set stops beyond which the risk is simply too high.

I was right... this fund has a very healthy growth rate and is performing well.

There are always risks in investing of course, but a real forex trader with a large, established firm absorbs these losses over time with discipline in their trades, which compound quite nicely thank you.

Anyway, I'm happy to share my research and contacts with anyone interested.

Going to be on heck of a ride if you ask me.

No comments: