It is still a bear rally

The Dow has rallied 450 points this week.
This is still a bear market rally.
The housing, credit card, lending mess in USA is way from over.
There will be panic as dozens of smaller banks go belly up, and finally when the big ones are bailed out.
Contraction.
Profit warnings.
Losses.
We have only seen the beginning of it.
What we can infer so far is that the US Government WILL step in and print the money needed to bail out and keep the ship going. They will print, get ready for it.
We are facing a serious recession, the commodities bubble will burst.

Our recommendations (I write separately on each of these recommendations):

- 10-20% in physical gold coins, that you have physical possession of.
- 2-5% in physical silver coins that you have physical possession of.
- The rest in cash, and cash instruments in diversified currencies.

Build good relations with your bank.
If possible, negotiate credit lines, even if you do not need them now.
Within 1-3 years buy rental houses (in the US) with 20-40% at bargain prices with 80-100% financing.
Within 2-5 years invest 20-30% in Asian stocks, China, India, Philippines.

Keep the house you live in, life quality is #1.
Keep a second home if the sentimental value is extraordinary.
Sell any other property you own, now.
Sell shares. US, Europe, Asia, Russia.
Visit, learn about Asia for future investment.
Learn to master computers/internet.
Read the classics.
Do not buy a new car.
Start a long term side business to keep into retirement.
Make your life leaner, simpler. Less is more.

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