Senin, 09 Maret 2020

Keep Calm and Buy When There’s “Blood in the Streets”

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CASEY DAILY DISPATCH - Casey Research

Editor’s note: As taught by our founder Doug Casey, we value calm, clear, rational thinking at Casey Research… we prefer to prepare before a crisis so we can sleep at night… and we avoid getting caught up in hysteria and panic.

With the market dropping like a stone… the Volatility Index wildly high at 58… trading being halted… so-called experts calling for more rate cuts, more stimulus packages, etc… No one seems to realize that nothing goes up in a straight line. And more than that, it’s unhealthy to expect it.

Now more than ever, it’s crucial for investors to remember one of Doug’s best lessons: Protecting your money is half the battle in wealth-building.

So today, we’re introducing a series from long-time Casey Research analyst Andrey Dashkov. He’ll give his best ways to weather volatility… share the vital information and knowledge he’s gained from unique life experiences… and dust off one of our best resources: the “Ultimate Crisis Playbook”…


Keep Calm and Buy When There’s “Blood in the Streets”

By Andrey Dashkov, analyst, Casey Research

As I sat down to write my first report for Casey Research – barely a year after I was hired, in 2007 – I had high hopes for what the future held.

But it was probably the worst time to get into the investment industry.

There was blood on Wall Street. Thousands were fired as “invincible” institutions crashed and burned. Analysts and bankers were laid off in droves. Investment bankers were jumping off ledges.

Lehman Brothers collapsed. Markets crashed globally. New York, London, Hong Kong… There was no safe haven for a budding analyst like me.

But it turns out, this timing taught me the most important investing lessons of my career…

Behind the Scenes at Casey Research

My name is Andrey Dashkov.

I‘ve worked behind the scenes at Casey Research for 10 years. I’m a chartered financial analyst (CFA) from Belarus (now a Canadian citizen living in Vancouver), and I’ve learned from the best. Incredible investing minds like Nick Giambruno… Louis James… and Doug Casey have helped shape my writing and thinking.

Now I’m here to tell you how to protect your wealth… so you can take advantage of the best off-the-radar opportunities I can provide.

I want to make sure you have the best knowledge – and access to information I’ve worked on cultivating for years – so you can do well in the current market climate.

Why do I care?

Because I’ve lived through the collapse of a country (more on that tomorrow). I’ve survived panics, political crises, attempted revolutions, food rationing. I want to share the lessons I’ve learned from my experiences. And all these events taught me things no textbook could…

Opportunities Lurk Everywhere

Here’s the good news: There are more investment opportunities available now than when I started. It’s not just stocks and bonds (or gold) anymore. There are thousands of exchange-traded funds (ETFs), derivatives, crypto – strategies that give you access to the same tools that the world’s best hedge fund managers use.

But to take advantage of these opportunities, you need to know how to be defensive… and to know that no matter what crisis or turmoil hits, your savings, your wealth, and your nest egg won’t be destroyed.

Over the next few days, I’ll share the fundamental ways to do just that – be defensive in the face of crisis.

And following this series, we’ll be in position to take advantage of corners of the market that Wall Street will always overlook. Those hidden investment gems that are within reach but seldom talked about. I call those Special Situations… so look forward to that.

Without further ado, the vital lesson…

Lesson 1: Prepare and Protect

I get it: It’s not fun to think about risks and danger right off the bat, but it’s way worse to face them unprepared.

The Great Recession of 2008–2009 was like a Big Bang. It blew up like nothing we’ve ever seen before.

But it taught me a lesson I'll never forget – even though I was just 22 at the time: Always have a plan B.

Have you protected yourself? Did you put money at stake that you can't afford to lose? Have you piled all your eggs into one shoddy basket?

The only way to invest is to be aware of the risks, seen and unseen. That's why the experts at Casey Research tell you how much money to put into a position. How to set your stop-loss orders. When to take profits, and what to do when the market turns against you.

Think about this… How many stocks do you have in your portfolio? How many ways to make money in the market? I bet you have a stock that’ll go up if the U.S. economy does well… and also something more conservative, to get some dividend income. Do you have a speculative pick whose success depends on a successful drilling campaign, or a clinical test, or a breakthrough of some other kind?

I bet you have a little bit of all of the above. As you should.

But how do you protect yourself? Do you hold gold? Treasurys? Corporate bonds? Alternative assets that don’t move along with the market? Hedge fund strategies, private companies, real estate, market-neutral funds?

I can go on and on…

Spread Your Bets

Much like you have a diversified “upside” portfolio, you should also have one that protects you from all sorts of risks. Not only inflation. Not only a debt crisis. Not only war…

The type of crisis nobody sees coming… The famous “black swan” event. Completely unforeseen, impossible to predict, but disastrous.

Like what we’re currently experiencing with COVID-19, which has people panicking and buying more hand sanitizer than they could ever need (and for some reason, tons of toilet paper).

In my future articles, I’ll talk about all the ways you can protect yourself from all sorts of risks – without knowing exactly what they might be.

What You Should Do Right Now

For now, I’ll leave you with two things…

One is a crucial tactic: Hold cash. Because regardless of what kind of crisis happens next, markets will go down. Assets will become cheaper. You’ll want to have liquidity at hand to take advantage of the best opportunities the next crisis will bring.

If you don’t trust fiat currency and prefer gold or other “hard” assets, fine. Whatever helps you sleep at night. Keep in mind, though, that the best option is to hold gold for the long term, not trade it for cash when a crisis hits. Gold may become cheaper, too. And to buy more of it you’ll need…

…Cash.

Second, I’ll offer you our "Ultimate Crisis Playbook" here for free. It’s got 24 tactical steps to help you survive and thrive in a crisis. The advice in this guide is timeless. Read it whenever you need a little extra guidance from the best minds in the industry.

And overall… Remember this contrarian mantra: Keep calm, and buy when there’s blood in the streets.

Having just a little cash at all times (say, 10-15% of your portfolio) will allow you to buy incredible assets on the cheap when bankers jump off ledges – and turbocharge your returns when the market gets back to normal.

Good investing,

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Andrey Dashkov
Analyst, Casey Research

P.S. Next time, I’ll tell you about how I decided I had to get out of collapsing Belarus 10 years ago… And why that matters to you, right now.


Like what you’re reading? Send your thoughts to feedback@caseyresearch.com.


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