Top eight speculations for right nowby Doug Casey
Bonds – The biggest bubble in financial history. A triple threat to your capital—interest rate risk, credit risk, and currency risk. The great bull market that started in the early ’80s is over. Bonds are now the worst single place for your capital. Get out now.
Stocks — Quite overpriced but—if only due to the trillions of new currency units being created worldwide—they’re likely going higher for at least a while. Since they represent real wealth and production, a much better choice for capital than bonds. But the possibility of a major meltdown exists. Exercise extreme caution.
Real Estate – It’s been very good to me for many years. But I believe the great post-WW2 property boom is over. This asset class is floating on a sea of debt. Property taxes can only rise as governments go bust. And demographics are solidly against it. Houses are not investments; they’re costly depreciating consumer goods.
Commodities – They’ve been in steep decline since the last peak, in 2011. But because of all the new currency creation, and the fact most are selling at very close to the cost of production, I suspect the next major move is up—barring a deflationary credit collapse.
Gold – Its current price is reasonable, and it’s going to be a big beneficiary of the next financial panic. You can keep buying coins (and selected gold shares) with confidence.
Cash – Most banks are illiquid, and many are bankrupt. Which makes it dangerous to keep cash in them. Governments, meanwhile, are trying to eliminate the use of physical cash. And what you do hold onto—in or out of banks—is being eroded by significant inflation. This is a huge problem that’s not often discussed.
Cryptocurrencies – Cryptos are perhaps the biggest thing since the Internet itself. It’s no longer early days. The market is bubbly, like Internet stocks in, say, 1998. The bubble, however, has far further to expand, because the technology is very young and very important.
Marijuana Stocks – Pot is going to become a big business in the years to come as this useful plant is commercialized in many different ways.
Uranium – This metal is the cheapest of commodities, and probably the most politically sensitive because of widespread “green” agitation against nuclear power. There’s a lot to this story that the average person is entirely unaware of, however. It’s now selling for far below its average cost of production, which can’t continue—unless 20% of US power production is shut down.
Greek and Cypriot stocks – Nick and I did a study on Cyprus in 2013. Since then, that market has doubled. But it’s still very cheap, as is Greece, which is probably the most hated market in the world. These markets are both down something like 95%. That should automatically get your attention.
Shipping stocks – A horrible performing industry, with many bankruptcies, and most stocks down over 90%. The industry is currently unprofitable—but it’s extremely necessary. Would you care to buy straw hats in the winter?
Commodities – See previous comments.
Puts – With low interest rates, many overpriced stocks, and a bull market, puts are at about the lowest price and highest potential in history. Buying the right ones, about 18 months out, might offer returns of 10 to 100 to one.
Solar stocks have pretty well melted down with the price of energy in general. But this technology is the wave of the future. Now is a great time to look at them.
Source: Casey Research
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