Inflation will eat your cash

If you want to be safe now, you should convert your cash into something more reliable, especially if you keep American dollars. In my opinion, it’s very important now when you can purchase many interesting assets like real estate, farmland, commodities and so on. However, I am not sure of ETFs or stocks. I’d prefer something real that you can see not only in your computer screen.

It’s high time to reduce debt, build some emergency fund and exchange dollars for other assets. Be prepared in advance.

Will Rajaratnam become a scapegoat?

There’s a lot of fuss about Rajaratnam and his insider trading. I agree, this is scandal. However, I guess he is a kind of scapegoat who will be talked about a lot to make people stop thinking of Bernie Madoff’s story.

Look at numbers. Here’s the case of $20 mln. Let’s double it and make it $40 mln. So what is it in comparison to Madoff’s billions? Only a fraction.

I bet the secret where Madoff’s money is will remain hidden and media will be full of Galleon stories instead.

What commodities to buy? How about wheat?

I’m not a commodity expert at all but I bet it’s better to have some commodities than too much cash, especially dollars. Now I’m interested in wheat but let’s start with greenbacks.

They have been losing ground to almost all other currencies. Just have a look:


Yes, in fact you’ve just lost 13% of your cash denominated in euros.
Why? Probably one reason is that the stock markets have been rallying like crazy but I see something more fundamental. Printing dollars and huge American debt is a big burden.
OK, stocks might go higher. However, after such a huge gain of 50 or more per cent putting new cash in equities right now is risky. At least for me.

I love Jim Rogers’ mind and I don’t want to say anything else. So maybe just watch this video instead:

Well, I can’t imagine myself being a farmer. Yet, I see something interesting in commodities.
That’s wheat:



I’m not going to use any leverage only 1:1 position. I consider long position for at least six months with a stop-loss order around 20% down from the start. I don’t like the downtrend in the chart and technically it’s too early but I think I’ll start with a small position and if wheat goes up I’ll add something more.