Moolah Blog!

The economy, in its current state, isn’t exactly booming! Keeping ahead of the curve is exactly what a lot of us should be doing! I’ve talked with a few comrades and found that many of you will be spending your stimulus package; there is nothing wrong with that, you’ll boost the economy, right?

Disclaimer: I’m an amateur investor and an amateur economist; please take the following advice at your own risk.

Heads up though! Recently the University of Michigan reported that consumer confidence dropped in this month! American consumers are not in the mood to spend. The Reuters/University of Michigan preliminary index of consumer sentiment fell to 63.2 in April from 69.5 in March, worse than the 69 reading expected.

Consumers haven’t been feeling this pessimistic since March 1982. Their sentiment for the next six months wasn’t that good either as that reading fell to 53.4, the lowest reading since November 1990, from 60.1 last month.

So what does this mean to you? Play your game as though you were playing Chess! Anticipate what the economy is going to do and make your financial decisions based on the knowledge you have gathered.

Click image to see ful size — Inflation History!

So, here is my number one expectation for the future; INFLATION! God I hope I’m wrong though. According to some of the economical principles that I know about, I would say that the key issue to worry about is inflation.

What can you do?

Put your money in Indexed Bonds – meaning bonds that adjust to inflation.

Put your money in the highest yielding account you can find! – for those that tend to leave money in the bank, go online and search for “high yielding savings accounts online” or something like “Indexed Bonds.”

Invest in commodities! This seems to be the most popular these days!

Also, look into INVERSE EFTs – These are index funds that go contrary to the market. So if the market is doing bad and you know it will continue then the inverse EFT would be a great way of investing your money. Granted, I would have wanted to say this to ya’ll much earlier because it would have been good advice when this Credit Crunch and Mortgage mess first really came to light in the media! (I didn’t have my blog up then) – Still, this is a good option for those who want to make some moolah when the market corrects itself and goes boom again! Think about it.

If inflation is bound to go higher, you will be seeing the Commodities reaching endlessly for the sky.

Respectfully,

Tony Tovar

Thanks to norcalblogs.com for the first image!