This article has been contributed by Kevin, proprietor of 20smoney.com and the Neo Survivalist blog.
Today was an incredible day for those of us that pay attention to the world of finance and more specifically, the stock market. After slowly moving lower, the stock market all of a sudden hit panic mode, with the Dow losing several hundred points in a matter of seconds. In fact, at one point the Dow was down over 900 points. The culprit apparently is the computer-based programmed trading that trades based on algorithms. Hit a certain level and you get an incredible amount of sell signals going through resulting in a plunging stock market. Yes, welcome to the 2010 stock market.
With such activity driving the market, it seems silly to even start talking about actual fundamentals of individual stocks. Investment strategies? Throw them out the window. How can anyone trust a market that is driven by computers and that seems to make no sense? Need an example? Apparently, Accenture (ACN) trading around $42, during the plunge apparently hit $.01 a share. Check the chart yourself.
So, with such a day fresh on our minds, it’s crucial to remind ourselves that we should be skeptical of paper assets and be investing in real assets. This is the main premise behind the Alpha Strategy.
What are the real assets that you should be investing in? Well to start, consider the things you need such as food, water, and maybe even ammunition. After taking care of the necessities, consider purchasing some bulk quantities of some consumer goods that you will need over time like razors, soap, toothpaste, etc.
Lastly, to protect your wealth, consider investing in precious metals. Sure gold and silver will have volatile movements, but take a long term perspective with precious metals. Also, consider it a way to store wealth versus getting rich.
Invest in real assets over time and it’s a great way to protect yourselves from the insanity of the U.S. economy, the lack of credibility of the U.S. stock market, and the horrific forces like inflation that are sure to be painful in the future. Today is a reminder that paper assets are risky and can lose incredible amounts of value in a matter of minutes.
Kevin is the author of the following websites:
Neo-Survivalist
20smoney.com




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