'WinFlation'…Making Money off Inflation…THINK NORTH

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  • on July 7th, 2007

‘WINflation’ is my new term for making money off inflation.

All the smart people talk about it. They have no idea. BUT YOU DO. You spend money.You read.

You know this war we are waging in the middle east will not stop.

I am long the stock market because my WINflation play is that the market goes up during inflationary times. Most assets do. It won’t end well, as I have warned many times, but this blog is not about timing for the most part. Especially as something as big as the top.

Precious Metals is another one of my FAVE WINflation plays because the biggest area of true inflation is our monetary policy. We must pay and continue to pay for our ‘protection’ and aggression in the Middle East.

Hard assets are the best ‘WINflation’ play

Before this cycle of monetary inflation runs it ‘s course, the Canadian Dollar should be well over par, oil prices should be much higher and Precious Metals should rally further.

Lately, my gold and silver stocks have been rallying. SLW, MDG, PAAS, IVN, GOLD to name a few.

I am starting to add again. I think they are leading a metal move and will be adding the metals themselves. I have been investing in Toronto, my hometown in Canada, for the past three years and that has been the right thing. I am doing more of that over the summer. I own a bunch of oil stocks as well.

I should have been doing all of this with just Canadian dollars, but alas, I am not that smart.

Canadians are like ‘Deers in the Headlights’ at the moment. They can’t imagine their dollar just 6 cents from par. They have massive US dollars that won’t come home, until the END of this trend, the acceleration phase.

They don’t get WINflation though and that trends go much longer than you think. Barring a real change in US Monetary Poilcy, the Canadian Dollar will zoom past par in the years ahead. Of course that will hurt large Canadian businesses, but thousands of small businesses will erupt as talent that never wanted to be paid in Canadian Dollars will flock for a strong currency and good quality of life just north of the border (despite the shitty UNIVERSAL HEALTH CARE :) ).

The Canadian start-ups will be funded in part by all the oil money, real estate money, water money, bank money and RIMM money being made. You Watch.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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