Ad Hominem

For those who have enough capital at their disposal it is prudent to hold 25% of your wealth in currency, 25% in gold, silver and industrial assets, 25% in stocks and bonds, and 25% of your wealth in real estate. Then depending on what happens, buy or sell these different components of your portfolio in order to readjust back to those 25% levels and in effect you will be buying more of a sector when prices are low and selling off your profits    when a sector is high. For example, when gold and silver are doing poorly stocks and bonds may be doing better. So you sell off some of your stocks and use the profit to buy more gold and silver until the right ratios are rebalanced. If your cash is above 25% and your other investments have done poorly, then use your excess cash to buy the other elements until your portfolio is rebalanced. Overtime your overall net worth should increase. For those who may be younger, or are investing with smaller amounts of capital, speculating and taking risks

  A truly capitalist economy awards success in the marketplace primarily through competition and consumer choice. However, there are private institutions that are so embedded in the overall integrity of the system that they are deemed: “too big to fail.” This concept implies that many of the key players in the economy are not existing as truly private enterprises but rather are insured by the public sphere and by government debt and taxpayer money thus privatizing their profits and burdening the taxpayer with bailing them out when their reckless behavior inevitably backfires on them and on the rest of the economy.   For there to be true efficiency in the free market all corporations, regardless of size, must be allowed to fail and suffer the economic consequences of their failed business policies and financial decisions. A market where high net worth participants are deemed “too big to fail” compromises the integrity of the entire economy and helps to further monopolize power and capit