Investment Advice

By Grant Davies

Ten years ago I notified the State Of Illinois regulators that I was ceasing business as an Investment Advisor. I filled out all the papers and jumped through all the bureaucratic hoops and stopped operating my lilliputian service. It was a side gig anyway and I wanted to be totally retired.

 Since then, I have avoided giving investment  advice to anyone. I actually did very little of that even when I was briefly in that business. I won't bore you with the details of that. Suffice it to say my guidance was very narrow and applied to only one small part of any portfolio.

However, in light of recent events and actions by the Federal Reserve Bank and the government, I feel like I should give some blanket advice that you heed at your own peril.

It concerns advice on how to spend your government check when you receive it. The money is being provided by the FED's virtual printing press. In other words, out of thin air.  Neither Santa Claus, the Easter Bunny, or the tooth fairy had any hand in this magic. But I'll tell you who will pay for it in the end.

Surprise! It's not you! I bet you thought I would name you as the signatory on that six trillion dollar check. And even if you pay for it in higher prices down the line, the real people who are on the hook are..wait for it..your grandchildren! Dontcha just love those little devils! Even though they don't know it, they are so generous!

And make no mistake, in lost purchasing power, economic growth, and career opportunities they will pay through their runny little noses. So how can you invest in something in order to make their pain a little more manageable?

Here is my advice for two investments you can make:

1) Take your check, divide it by the number of your grandchildren, take the money and go buy some gold coins (or other actual money, if you can figure out what that may be) for each of them and put it somewhere the government can't get it's greedy paws on it. History tells us that safe deposit boxes won't work. But the backyard and a shovel is worth considering.

2) Take a few dollars and buy each of them a few used paperback books by Milton Friedman and hand them to the kids as soon as they can read.

So there is my advice, take it or leave it. The price was free so, you know the old axiom. But no matter what you do just remember who is owed the money.

PS  Don't ever think the government is just making another horrible mistake. This is part of an obvious plan that they think will solve/coverup all the past mistakes they have made in the last century or so. More on that in future post.