I have posted my investment theory years ago and it may finally be happening, or not.
Short version of my theory and going off of memory - In major crisis, liquidity issues arise hammering 3rd world countries first and working up the food chain. Last men standing (for a little while) will be the USD & US Treasury bonds. In USD terms, foreign markets will decline an average of 50% and foreign currencies decline around 20-25%. For examples, see 2000 & 2008 crisis. That would be an effective price of .38-.40/$1 for USD holders buying foreign investments. Once you see King USD on magazine covers, it will be time to trade USDs for foreign stocks/investments.
Because of governments all catching cases of extend and pretend flue, things are taking years longer than I expected. I am not sure that Covid has triggered this type of economic scenario, but I am watching Dr. Copper closely. Today, Copper closed below what appears to be critical support ($2.50 USD). If Copper stays below $2.50, then I figure the event has started. If Copper recovers, then this is likely just a relatively short, albeit painful economic blip.
I have been saving cash and patiently waiting for the crisis. Now I am looking for ideas of what people consider to be the best of the best companies that pay a dividend of at least 5%. Because of Chinese investment laws, Chinese stocks are excluded. Thanks in advance for advice and/or ideas.
Short version of my theory and going off of memory - In major crisis, liquidity issues arise hammering 3rd world countries first and working up the food chain. Last men standing (for a little while) will be the USD & US Treasury bonds. In USD terms, foreign markets will decline an average of 50% and foreign currencies decline around 20-25%. For examples, see 2000 & 2008 crisis. That would be an effective price of .38-.40/$1 for USD holders buying foreign investments. Once you see King USD on magazine covers, it will be time to trade USDs for foreign stocks/investments.
Because of governments all catching cases of extend and pretend flue, things are taking years longer than I expected. I am not sure that Covid has triggered this type of economic scenario, but I am watching Dr. Copper closely. Today, Copper closed below what appears to be critical support ($2.50 USD). If Copper stays below $2.50, then I figure the event has started. If Copper recovers, then this is likely just a relatively short, albeit painful economic blip.
I have been saving cash and patiently waiting for the crisis. Now I am looking for ideas of what people consider to be the best of the best companies that pay a dividend of at least 5%. Because of Chinese investment laws, Chinese stocks are excluded. Thanks in advance for advice and/or ideas.
