The Sector That Will Grow Your Wealth… In Any Market
My investment ideas are based on companies that control solid resource assets. I mean oil, natural gas, uranium, gold, silver, copper and much more. These are real things, not vaporware.
The firms in my portfolios have not only great assets, but also great management and excellent business plans. These companies are building themselves over time and creating new wealth. Over the long haul, I’m not overly concerned about the companies on my list. When the smoke clears, they’ll be standing tall.
The End of Big Finance and Big Welfare-Warfare State
Let’s distill the problem. We live in an era — and I believe it’s the END of an era — when the West’s so-called “finance industry” grew far too large and is now collapsing. Same thing with the so-called “welfare state” and its companion “warfare state.” Big Finance is dying, as is Big Welfare.
Back in the 1960s, something like 15% of overall U.S. corporate profits came from the banking and finance side of the economy. By the early 2000s, something near 50% of corporate profits came from running money. That was, quite simply, too much of the economy devoted to finance.
Occupy the Resource Space
This issue of the collapsing “finance industry” gets back to a point I’ve made before, that finance — running money — isn’t what creates wealth.
You create wealth by digging or pumping something out of the ground. Then you refine it and process it, adding value along the way. Then you turn the product into a finished good that somebody else needs or wants. The idea of “finance” is OK to facilitate the foregoing, but not as an end in and of itself.
This line of thinking gets back to why I like the resource space. It’s why I pound the drum so hard for you to “occupy” the resource space, so to speak. Banks come and go — although many of them don’t go fast enough, in my view. But a good oil field or ore deposit is forever — well, almost forever, or at least until someone comes along to pump it or dig it out. Occupy that.
I’m inclined to think that the next financial revolution will bring competition to government-issued currencies. The next useful currencies will be backed by real assets — gold, silver, energy and more. So owning an interest in oil, uranium, precious metals and more will be like owning the “banks” of the future.
Sincerely,
Byron King
for The Penny Sleuth
Related Posts
Byron King
Byron King is the managing editor of Outstanding Investments and Energy & Scarcity Investor. These publications reach over 60,000 paid subscribers. He is also a contributor to the Daily Reckoning. King is a Harvard-trained geologist who has traveled to every U.S. state and territory and six of the seven continents. He has conducted site visits to mineral deposits in 26 countries and deep-water oil fields in five oceans. This provides him with a unique perspective on the myriad of investment opportunities in energy and mineral exploration. He has been interviewed by dozens of major print and broadcast media outlets including The Financial Times, The Guardian, The Washington Post, MSN Money, MarketWatch, Fox Business News, and PBS Newshour.
Start your free Tomorrow in Review email subscription...
We Will Not Share Your Email AddressWe Value Your Privacy
ShareThis
I think that online trading in penny stock is good and enough to make money..