Wealth=Wise(Investments+Strategies)

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We read recession news all over the main stream medias and alternative medias. However, have you experienced it first hand ? I have always lived like a poor so whether it is recession or depression, it does not make a whole lot of difference in my life style.

However, I experienced it first hand this memorial weekend as we took our summer vacation to Highland, North Carolina. There are 3 common things that my spouse and I both love, 1 is God, 2 is book and 3 is travel. Over the span of seven years that we have been married, we have traveled over 27 states in America. One of our family jokes was one that from his late mother , according to her it’s cheaper to travel than see a psychartist and I have to agree with her :). I personally think taking holiday from our normal routine life is very therapeutic. It is a time when I unwind, relax and reflex on life. It is a time when I rejuvenate, recharge and contemplate on new investment strategies. I knew there are a lot of people who are cutting down a lot of activities or stopped buying a lot of things that they used to have and I feel bad that they have to do it that way. But, I do not think I am going to cut down my holiday any time soon because I see the value of holiday in my family life.

How could you resist this, right ?

I might come across cocky if I say I do not see why people could not live the same lifestyle as they always do if they have lived under their mean in good or bad times. I told my chiropractor recently that the only departments that was spared from this year budget cut on University of Florida was the library system, he said of course, how could they cut anymore ? The library system is run on a very lean budget,they had cut the library system’s budget so deeply in the past years and he personally thinks if they cut anymore than it is now, it is not going to be a functioning system. I think my chiropractor insight was spot on. I see the main reason our present credit crisis we are facing in the US is because most people (a lot) lived beyond their means during the good times and when bad times set in , they are not prepare.Most people start to realize there are a lot of things they could live without in the first place ; they can nor longer live the lifestyle they are used to, ie., beyond their means; and they have to learn it in a hard way .

What has this have to do with Schindler’s list’s investment style ?

Well, I do not know about you but when I watched Schindler’s list, I was an young adult and the message that sunk deep in my brain cells was that a prudent/ wise investor can make money regardless of bad time or good time.

Schindler acquires a factory for the production of army mess kits.

You can read the entire extract here .

Picture courtesy here.

Well, as we traveled on I-75 from FL to GA, the road was DESERTED ! I had never in my entire 7 years living in America seen such a quiet I-75 on a memorial weekend. It was a bliss through from GA to North Carolina. The minute we crossed GA boarder to the mountain resort town of North Carolina, gasoline price was $4+ from $3.80+ in GA. There were a lot less tourists in the mountain resort town, Highland, North Carolina that I used to know. It has always been a vibrant summer mountain resort town as far as I can remember. But, not this year.

There were 2 incidents that happened lead me to wonder if we are going through recession or depression :

1. The slowest May the last 45 years.
While driving along the mountain town of Cashier looking for Whiteside mountain to do our hiking trip, we stopped by a church building which had an art gallery sign board. An old man welcomed us as we walked in. He told us he was the owner of all the paintings in the art gallery except 3. He shared with us his story, from WWII air pilot to an accomplish artist who did Burt Reynold’s portrait. He told us this was the slowest May month he has ever encountered the 45 years while he was in business. He said if thing continued to go on like this, he might declared bankrupt anytime soon. He also informed us that every painting and limited edition print has been reduced ranges from 50% to 90%. We picked up one limited edition of Whiteside mountain print for $10 which was priced at $110 in his gallery catalog dated 2007.

2. 2 deserted towns
It is our practice to fill up our gas tank before we cross GA boarder to FL because gasoline price is always 15-20cents / gallon cheaper in GA than FL. We often stop at a small town : Adel , to fill our gas tank. As usual, we took the exit into Adel. We thought we made a mistake because the town looked like a ghost town, the family motel which was very familiar to us had the SALE sign on and it looked so ruined from the outside, it broke my heart. All gas stations were deserted. So, we moved on and followed the sign board to the next town : Cecil, GA. There were plenty of sign boards leading to Cecil, but as we approached the exit, I noticed there were some sign boards that did not show any advertisement signs. I took that as bad sign and told my hubby that it could be another deserted town. And it turned out I was right.

When did these 2 small towns become deserted (at least the part of town at the entrance of I-75 exit) ? Are we in recession or depression ? Is this the tip of the iceberg ? I knew Paul R. La Monica at CNNMoney.com has written an article recently about : Recession? Maybe. Depression? Get real. But, did he know anything about us in the South ?

Now that I have presented my 2 cases, should we be depressed be it recession or depression ? No, by no mean. Educate yourself with the best asset class that Wall Street does not teach you.

1. Inflation & Gold-Silver Breakout by By Jim Willie CB.
I am sure you will have goose pimples when you read this from Jim’s report :

The one key item that neither Wall Street nor USGovt agents of corrupt information and data seem to overcome is gasoline and diesel. The extra cost to the USEconomy in higher energy prices just since February is roughly $300 billion. Match that to the mickey mouse $130 billion in handouts to households by the kindergarten players in the White House and Congress from the stimulus package. THESE GUYS DON’T GET IT!!! The USEconomy and US banking system are both on track for widespread seizure, then collapse. Cost explosion does not represent broad systemic price inflation. If the US Federal Reserve and other major central banks react to sharply higher cost inflation with official interest rate hikes, the last cost element will enter the explosion picture, namely borrowing costs. The task of the USFed is to continue to monetize the insolvency and bankruptcy of the major pillars of the United States system, not even to consider any remedy. Collapse is the risk now, and those words are no longer alarmist or poppycock. A major seizure is on the horizon, as prices have interfered with viability of commerce, especially internationally. Households face much higher costs just to arrive to work sites. Employers face much higher costs just to maintain profitability. Suppliers face much higher costs just to keep production lines flowing. Schools, hospitals, and other public facilities face higher costs in order to maintain function. The first failures and seizures will likely occur in California, where the greatest home loan abuses took place, where the biggest nastiest and most painful home price declines have taken place, where the biggest state government budget cuts have been ordered.

2. Correction in Gold Near End by Jim Willie CB

Jim possess insight not many people have, I subscribed to his free newsletter when he started his site: goldenjackass and I have never turned back. I learned a whole lot from his writings. His writings are alarming, honest and true. No, I am not affiliated with him, neither I am paid to write for him or his site.

I personally like NEM (Newmont Mining Corp), rated strong buy by Ford Equity Research - Rating Report at my online tdameritrade account.

Picture courtesy of tdameritrade.com

The Chart looks good to me.

Picture Courtesy of stockcharts.com

Living off dividends wrote 2 articles which I think are very relevant at this era :
1. Profiting From The Rise In The Price Of Oil.
2. How To Invest In Foreign Currencies & Foreign Stocks.

Please do your own homework before you purchase any stocks. And please read my disclaimer, here.

This post is submitted to 155th edition of Carnival of Personal Finance which will be scheduled on Mon., Jun. 2, 2008 and will be hosted by Moolanomy; and 62th edition of Carnival of Money which will be scheduled on 06/03/08 and will be hosted by Finance Gets Personal., and 15th edition of Money Hacks Carnival which will be scheduled on Jun 4, 2008 and will be hosted by Broke Grad Student.

May your day be filled with peace and harmony.

Tags: Carnivals //