August 20, 2013 | By Tekoa Da Silva
I had the chance to reconnect with one of the great market speculators of our time, Doug Casey, chairman and founder of Casey Research. It was a fascinating conversation, as Doug built an astounding career betting on or against, “politically-caused distortions in markets,” otherwise known as ‘speculations’.
During this powerful interview, Doug indicated the world is about to enter an extraordinarily tumultuous period, due to the build-up of “the biggest bubble in world history”. He further identified what he believes as the world’s cheapest market, as well as what average investors can begin doing right now—to both prepare and profit—from the coming collapse.
Speaking towards pending disaster in the global debt markets, Doug said, “We’re still in the midst of the biggest bubble in world history. It’s bigger than the tech stock market bubble around the turn of the century. It’s bigger than the real estate bubble…[it's] the bond bubble. With interest rates ranging from zero to a few percent—this is the biggest bubble in history and when it collapses, it’s going to be catastrophic because the bond market is so huge. It’s much bigger than the stock market is.”
With respect to the fallout, Doug said, “It’s going to be huge. It’s going to result in lots of financial companies collapsing…I pity the poor person that is saving in a currency because the governments are going to continue printing money…This is very complex, very big, very serious…the next ten years from every point of view I can imagine—economic, financial, social, military, are going to be extraordinarily tumultuous. [But] I hope I’m wrong.”
When asked if there are any cheap markets left in the world today, Doug said, “These mining stocks, the good ones, the well-managed ones are really about as cheap as they’ve been in history. So unless you think people are going to stop wanting or needing copper, nickel, uranium, gold, silver and moly, you’ve got to buy these things now. They’re really about as cheap as they’ve ever been—[during] the last 47 seven years that I’ve been watching them…There’s not much cheap in the world today…except for these stocks which have really been beaten down.”
In regards to what every investor should begin doing, whether large or small, Doug advised, “[Accumulate] capital that you’re putting aside for future opportunities. That should be in the form of precious metals—the physicals—and everybody should buy some of those every month. I still do.”
But of greater importance Doug added, is to begin, “Arming yourself with knowledge. I recommend a couple of books in particular, Economics in One Lesson, Totally Incorrect…[and] I would highly recommend The Market for Liberty by Tannehill.”
As a final parting comment, Doug noted that, “We’re pretty close to the edge of the precipice…it’s fascinating to watch but I can’t be optimistic about the next few years…[but] that doesn’t mean the world is going to come to an end—It just means it’s going to be reorganized.”
This was another powerful interview with one of the great market speculators our time. It is required listening for serious investors and market students.
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Tekoa Da Silva
Bull Market Thinking