Blood In The Streets

24. oktober 2008

Put possitions are doing extremely well.
Gold is not doing well.
Oil is falling.

We hold on to physical gold.
Hopefully we will never ever sell the physical gold, so the day to day price does not matter much.
We want to hold some oil, so we have bought some Russian oil and are taking a loss on that.
We accept that loss as the cost of hedging against war with Iran.

But, most importantly – if you have listened to our advice you are, as we are, 70-90% in cash.
Cash is a very comfortable possition to be in now.
Just watching the crazyness.

If you hold cash, you are not wiped out.
Remember that, many are wiped out in this market – yes – wiped out.
80-90% of portfolios gone.
Life savings gone.
Wealth in options programs – gone.
Gone gone gone. Not to return.
Dreams scattered, careers seemingly broken, bankruptcy etc.
This is bad and this is for real.

Stay put, don’t enter the market to early.
We have been looking for good buys, bought some oil, but found nothing else to buy.
So we stay put in cash. Booring, yes. Safe, yes.
We will watch the blood in the streets some more.

The whole market has changed. The losses now will change the mentality of the entire market. It is to early to say what will come out of it, but things will not be the same from here on.
Hopefully finance and money will be less important, perhaps the litterary section of the New York Times will become larger than the financial section – stuff like that – reorientation.

Your highest return on investment is in yourself, in your own ventures, in mixing your capital and your labor into something valuable.
Hold on to the cash, it is what will take you through the very tough years ahead.
Focus on making the cash you have the basis for the lifestyle you want.
What is the lifestyle you want anyway? Truly want?
Millions hate their present job, maybe this is their chance to embark on something better.

So many people have been chasing money for the last decades, thinking that the money would at some point buy them the lifestyle the wanted. Some have made it, most have not. And now the money is gone, so the carrot millions have been chasing for the better part of the last two decades in gone, gone, gone. Decades wasted.

Reevaluate everything. Sit down with you loved ones and reevaluate.
Can you pursue your desired lifestyle in a different way, on a shoestring?

The world will not end, you will still be here 10-20-50 years from now (depending in your present age).
Focus on your lifestyle.
What do you want to do with your life?
Embark on ventures for the long haul.
Create value for the long haul.
Systematically, thrifty, dollar by dollar.
Carefully protect against the downside.
And you will prosper.

Oslo, Norway. October 24. 2008 Hans J Lysglimt

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