Everyone is concerned these days on how to protect their net wealth. Nothing is safe. Leaving your money…regardless if it is British pounds ( which fell from the low 2.00 to 1.60s to the US dollar), the US dollar or even Eurodollars ( do to a breakup in the EU). So far the specter of inflation has not come to life.

However it is virtually unthinkable that there will not be any inflation with all the money that has been injected into the worlds money supply. The facts are very simple. There are droughts, more demands from a growing population ( China, India..etc) and diminished supplies of basic commodities. Do you remember rice last year? All of these are a catalyst of inflation.

Jim Rogers advocates buying agriculturals to protect your net worth. The fact is, I remember being at the luxury hotel the Breakers in Palm Beach Florida in about 2005 and front page of money magazine ( I think) was Jim speaking about the housing bubble in the US. He was right! How many people wished they would have listened to him? To be honest.. I greatly pared down my real estate holding but did not sell everything and has been very aggravating. Can you imagine if Jim Rogers is correct again? Jim Rogers has been around a long time with an interesting track record.

I have to agree with a great of his thinkings regarding the US dollar, Inflation and Commodity trading. However I differ in the fact just jump and go buy various commodities or sell US dollars etc without a thought out plan. Timing is everything. You can be right long term but suffer in the short run ( and lose money). Instead of just predicting…let the price action delineate your investment actions. This is what trend following is all about. Follow the price action.. It is extremely probable that the predictions of Jim Rogers will be actualized. In my opinion the only way to benefit from the potentials is to have a well thought out plan based on risk and money management.

If this is not your core competency seek the advice of your financial planner or more aptly a commodity trading advisor that understands risk. Potentially we could be headed back in times like the early 1980s with high interest and high inflation or even worse with potential hyperinflation. Anything is possible. You have a choice, you can do nothing…keep your money in the bank…and inflation will wipe out your net worth… or you can ride the inflation wave (when and if it comes) and look to protect your net wealth.

Andrew Abraham
www.myinvestorsplace.com

Andrew Abraham has been in the financial arena since 1990. He is a commodity trading ddvisor and co manager of a Commodity Pool. Since 1993 Andrew has been a proponent of quantitative mechanical trading programs. Andrew's major concern is not only total return on investment but rather the amount of risk that one would have to tolerate in order to achieve returns He focuses on developing quant models that encompass strict risk adherence and correlation. He has been a speaker at conferences as well as an author of numerous articles. Andrew has spent years researching ideas that have the potential to outperform indices as well as maintain fewer draw downs.

Visit Angus Jackson Partners (http://www.angusjacksonpartners.com) Contact: A.Abraham@AngusJackson.com (mailto:A.Abraham@AngusJackson.com)

© 2009 Copyright Andrew Abraham - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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