Words of a Discount Broker pioneer and Elvis’ Sergeant – Jack White

Thanks to the Union Tribune and Discount broker, Jack White, for today’s article with a  sobering look ahead:

Yes indeed – Jack was Elvis Presley’s Sergeant in the US Army – perhaps a reason for the King’s “ALL SHOOK UP” lyrics…

Jack’s candid observation and thinking about capital preservation is quoted, “

his mindset these days is with conserving capital rather than just trying to make more money.

“I’ve done some hedging with gold. It hasn’t done so good lately, but it will go back up, I think. It’s at 13 (hundred dollars) today, and I think could hit $2,500 an ounce. Cycles are predictable, but the timing of cycles is not. Timing is luck. That’s when you move. Like now the timing of gold is right to get back in. But again you look back on success, and it’s hard.”

What is his specific advice should one be lucky enough to have capital to preserve?

“Very short-term municipal bonds, Triple A. That’s about the only place I feel comfortable, other than gold, but gold’s a hedge against inflation. They don’t have much yield, but they conserve your capital. They have about 3 percent, so that’s not bad.”

Predictions for the future?

“We’ll see how it all plays out. What worries me the most now is the trillions we are printing of paper money. You gotta pay eventually. I believe this will trigger huge amounts of inflation.”

Any time frame on that?

“Nope. Inflation followed by deflation, and a collapse in the economy. I’ve seen that scenario play out in the past. I’m pessimistic because of the inflation situation — and politics. I don’t think we are working well politically. That worries me.

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About davidefrost

A Vermont Yankee in Southern California.
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