6 'safe' moves that put you at risk

Many retirement investors have tucked their nest eggs into supposedly low-risk havens like bonds, bank accounts and gold. But even these aren't so safe anymore.

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VIDEO ON MSN MONEY

36Comments
Jan 16, 2013 9:47PM
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Is there an index fund that tracks Wall Street bonuses?

 

That would seem like a pretty safe bet that goes up at least 10% each year.

Jan 17, 2013 4:48AM
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Burn me once, shame on you.  Burn me twice, shame on me.  There's the reason in a nutshell:  people MUST be conservative with their money.
Jan 17, 2013 11:08AM
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The headlines everyday should read: Stocks rise on banks buying stocks with free government money. Bonds rise on banks buying bonds with free government money.
Jan 17, 2013 3:11AM
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My point is we don't have to go down this road of hiding in bonds and dumping stocks if the government would just go after monies readily available to them by simply doing their job. If there really is a Mafia in New York City then why aren't we declaring it an illegal criminal organization and seizing all their assets here and abroad? You can imprison Wesley Snipes but you can't find the Mafia's monies? C'mon. We will have to cut the military and government down at some point. There are no martians coming. The Russians aren't coming. The Chinese couldn't care less. We have to cut the fat.
Jan 16, 2013 10:05PM
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Tony is speaking out both sides of his mouth with this recommendation. He is going triple long on Gold, and recommending a double short at the same time. Yet he says gold is one of the safer investments. Make up your mind. It doesn't make sense to short gold in the middle of the longest running gold bull market there has ever been.

"Of late, I've been recommending the VelocityShares 3x Long Gold () exchange-traded note to my clients. Other, less-leveraged options include the ProShares UltraShort Gold () and the Gold SPDR exchange-traded funds."

Tony says to look at the Junior Gold Mining Stock index, GDXJ. Many Junior gold mining stocks will run out of money before making any. As Mark Twain says, ""A gold mine is a hole in the ground with a liar on top." You will need to be highly selective in Junior mining stocks to make money in them. Find a good newsletter that can recommend these types of stocks, and separate the wheat from the chaff.

"Gold mining stocks also look attractive and can be played via the Market Vectors Junior Gold Miners () exchange-traded fund."
Jan 16, 2013 10:10PM
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By and large, a good article by Tony. He's right on diversified portfolios. We may be looking at a market top with the indexes dropping big time from here.

Tony is right on Corporate bonds and U.S. Treasury bonds. Interest rates have nowhere to go but up, and bonds have nowhere to go but down.

Banks are a dangerous place to put your money. The largest banks have deployed Financial Weapons of Mass Destruction, aka derivatives. They may lead to a financial system meltdown. Banks in the Great Depression went bankrupt, and they may go bankrupt again.

Tony is right on Precious Meals: "All of this suggests gold will go higher, not lower, long term."

I didn't agree with his stock recommendations though.
Jan 17, 2013 12:38PM
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The Coming Derivatives Panic That Will Destroy Global Financial Markets:

It would be hard to overstate the recklessness of these banks.  The numbers that you are about to see are absolutely jaw-dropping.  According to the controller, four of the largest U.S. banks are walking a tightrope of risk, leverage and debt when it comes to derivatives.  Just check out how exposed they are...

JPMorgan Chase

Total Assets: $1,812,837,000,000 (just over 1.8 trillion dollars)

Total Exposure To Derivatives: $69,238,349,000,000 (more than 69 trillion dollars)

Citibank

Total Assets: $1,347,841,000,000 (a bit more than 1.3 trillion dollars)

Total Exposure To Derivatives: $52,150,970,000,000 (more than 52 trillion dollars)

Bank Of America

Total Assets: $1,445,093,000,000 (a bit more than 1.4 trillion dollars)

Total Exposure To Derivatives: $44,405,372,000,000 (more than 44 trillion dollars)

Goldman Sachs

Total Assets: $114,693,000,000 (a bit more than 114 billion dollars - yes, you read that correctly)

Total Exposure To Derivatives: $41,580,395,000,000 (more than 41 trillion dollars)

That means that the total exposure that Goldman Sachs has to derivatives contracts is more than 362 times greater than their total assets.

Without a doubt, a derivatives panic is coming.

It will cause the financial markets to crash.

Several of the "too big to fail" banks will likely crash and burn and require bailouts.

As a result of all this, credit markets will become paralyzed by fear and freeze up.

Once again, we will see the U.S. economy go into cardiac arrest, only this time it will not be so easy to fix.


http://www.silverbearcafe.com/private/12.12/comingpanic.html




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Anthony mentions people are paying off debt.   That would be the ultimate goal of everyone in America.   By paying off debt, you will have more to spend on what you want without going into further debt.   The banks may not like that, but it sure feels good when you can pay cash and NOT have a debt hanging over you.
Jan 16, 2013 8:21PM
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Eight pages of yesterdays' news. I can't believe that people would actually pay for this readily available data. Then again, they pay for bottled water. ????
Jan 17, 2013 10:41AM
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soo... let him and his ilk chrun your money so the....err you get rich!
Jan 17, 2013 12:52PM
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I've been a successful investor in the market  over several decades. During that time I have read millions of articles by thousands of analysts. The vast majority of them have contained dire news about the impending collapse of civilization. Now that doesn't mean they don't contain valuable information or gems of wisdom, because they often do. However, they don't change my game plan which is simple. My money is divided between stock, some bonds, and cash. The percentage in each determined by how risky I regard each asset class. At this point in the market, I'm moving into a greater percentage of cash, but I still have most of my money in equities. 

The problem you clowns have is you don't have a game plan. Most of you mumble on incomprehensibly about whatever crosses your empty brains. Never do I hear any sort of thoughtful analysis of why you feel this way or that. It is always the same old rubbish about the big bad Fed or some cockeyed view of economics or politics or your mom (the main reasons you're so screwed up).

Here Anthony writes a very good and concise analysis of what the market is facing, and I doubt any of you took the time to read it. If you did, you didn't understand a word of it. In short, you're a bunch of dumbos mostly mired in some sort of thinking that revolves around economic conspiracies. 

It is wonderful to be me, but absolutely horrible to be you!

Har har har!
Jan 17, 2013 7:30AM
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Wrong again. Within the organization of all commercial investments today is-- administration. That's a paper or button pusher paid to create complexity where transparency used to keep the venue honest, or at least predictable. The amount of fake currency in all investments including metals is way out there. Thus, no matter what commercial or organized venue you choose, you lose. The safest bet is to look at where you live. It has been devastated by bureaucracy and now suppress-controlled. Gains are wholly available in creating and sponsoring counter-organized enterprises. The latter has some surprising bonuses. We're unlikely to keep paper games going and somebody has to lose. No one has yet. That should be a good indication that something is more afoot that just making deadbeats rich. A new economy is a priority, it has Risks. The biggest loser exists already... he/she thinks the markets and investment vessels can sustain without actual cash, tangible activity or substance. No they can't.  
Jan 17, 2013 8:09PM
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Anthony

 

While I agree with most of what you say, I'm not sure about the housing market. You say it stabilized? Perhaps, maybe, possibly, it just temporarily stopped falling. Unless people find good jobs it could just keep falling. My neighbor retired and listed his house over 4 years ago and said he is headed for Florida. He is still here in Jersey. He has been chasing the price down, constantly hoping to sell after each drop only to drop it again.

 

And we pretty much agree on Gold or Prescious Metals. I can't argue with your other positions, I agree with them..

 

And you could throw in a bad word for all those folks getting suckered into Annuities. If Quality stocks don't have high yields and banks have no yields, those folks that are buying Annuities better grab their ankles and hold on tight!

 

The problem I see in the Nation is poor Leadership, muslim loving anti American Leadership at that!. Obozo can't see the problem because he has his head too far up his butt. Liberals can't agree with Conservatives. Congress like wise can't get their heads out of there own butts.

 

Shortly after Ed Rendell loyally complimented Obozo's Cash for Clunkers, Governor Rendell said, "But what I would have done is put people to work on America's infrastructure". Rendell may be one of a very few Democrats I would ever vote for, but evidently even his own party doesn't listen to him.

 

But God Bless Helicopter Ben, he's the man gonna make Gold rise as soon as he creates another couple zillion dollars.

 

One day the chickens will come home to roost and lay a golden egg..

Jan 19, 2013 9:21PM
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I was impressed with Obama this week....as usual using children as human shields to protect and promote his agenda to disarm citizens....he had hoped the fast and furious deal would work, but they got caught.

 

All the liberals will be very sorry for promoting Obama's Progressive Liberal Agenda when all the weapons are removed from responsible citizens.....our guns are not just for hunting and personal protection....they are to defend us from a out of control and corrupt government.....

 

The Tea Party Patriots’ mission is to restore America’s founding principles of Fiscal Responsibility, Constitutionally Limited Government and Free Markets.  We think the Obama Agenda will start to collaspe by 2014.... We will gain control of Congress.  

Jan 19, 2013 8:45PM
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Sorry AZ Blond

 

If you are as smart as you say you are you would know that through the history of our market economy it is cycle of ebbs and flows. The cycles of Bear and Bull run about six to seven years. Yes the individual investor needs to know when to hold them and when to fold them like a good poker player. The political players in DC have very little to do with the overall market performance other than the daily dalliances of the fear and euphoria of the average unskilled investor. What I have found is I seem to have good to average performance other than when in 2007 the housing market tanked on a thirty year old deal the banks and mortgage companies made with the Carter Administration, which basically gave said banks and mortgage companies less regulation in exchange for more lenient lending practices to lower income and minority applicants. Look where that got us when they started to default which in turn caused the housing market to tumble, followed by jobs and so on. The markets if you watched had started to tumble post 9/11 to bottom out in 2006 and had started their upward trend with a minor blurb due to the housing crisis and has since made a correction. Only a fool will think that because of Obama this high flying market will continue throughout his administration. It will however trend downward again in its normal cycle. A smart investor will be able hedge this and suffer minimal damage. The only people who will surely suffer under Obama's jobless economy are the working middle class. The poor never suffer under any administration because of the safeguards put in place decades ago. At least Romney, who is not a career politician (he in fact did really want the presidency, just to help a struggling economy and middle class which he realizes is the backbone of our economy), knows what it takes to create real good paying jobs and has the connections to do so. Why do you think Obama had a private sit down lunch after the election with Romney and if you notice the media was never privy to the details of said meeting. Hopefully Obama paid some heed and will not be the self-righteous, arrogant **** he appears to be. To tell me that we are better off under the job killing policies of this administration shows that you and those like you Madam are a fools!

Jan 17, 2013 12:56PM
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BULL MARKET IN PLAY!!!!!!!!!!! GOD BLESS BARACK OBAMA!! DOW 16000 IS AT HAND.

Jan 17, 2013 12:46PM
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Wow, you would never know that people had "turned away from stocks" seeing how today we are up and volume is brisk. Best global stock in the world, Walt Disney, heading to $53 again. Why so much doom and gloom from MSN Money? Oh yeah, they backed Romney, that's why. BULL MARKET IN PLAY and Mirhaydari's short-selling scare piece fails.
Jan 19, 2013 5:28PM
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It`s all about buying great stocks like I have.Most people are so hung up on hating

Obama that they never do the required reading.The market is up 67% with Obama

but many right wingers can`t even spell his name.There`s little hope for the birthers

that love guns over brains.Thank God most Americans arn`t so stupid to vote for

elitist BS people like Romney.

Jan 17, 2013 3:06AM
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I wonder how much money we could save if we cut out all the free money to oil companies, illegal immigrants, wealthy social security recipients, wall street bailouts and stopped ignoring organized crime along our border with Mexico? Would it be so bad to seize their assets and enact a death penalty on coyotes, drug smugglers, cash smugglers, people smugglers, all street gangs, all mafias, all tax cheats, etc...Surely we know where they keep their money. I wonder how much money could be saved by temporarily ending matching funds to the retirement accounts of ALL military and federal government employees and postal employees? Could we earn extra money by charging an entrance fee to all legal foreign visitors since our currency is worth substantially less abroad? How much could we save by cutting out all of the benefits paid to Congressmen? How much for downsizing the military? If we know where the taliban is why not nuke them instead of parking an expensive and useless force of troops in the area? We have to stop policing the world and wasting money. I put all the blame on the Republican Party. Our country is bankrupt and they try to point the finger at the Democrats now? Please.
Jan 16, 2013 10:03PM
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Another good article from Anthony. I agree in part about Gold likely rising, but I'm more sanguine about stocks. 

My view is to stay in conservative stock or funds especially the kind that aren't afraid to hold lots of cast to take advantage of lots of buying opportunities a bumpy market offers. 

No matter what the economy is or the politicians screw up, there will always be good companies that'll make money. Your goal is to find them. 

Har har har - it is wonderful to be me and horrible to be you!
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