Greg's Note: During our economic downtime, people are talking about how we're going to survive on the margins. How are we going to pay for gas, clothes, food or even shelter? But there is another area of the economy that has gone largely unnoticed. What about the luxury goods? If we go into a recession, who's going to be buying the Porches, Cristal and caviar? Why isn't anyone worried about the rich people? They live in the same economy we do and face all the same problems. I guess people just don't seem to care about the $100,000 birthday party for a two-year-old that gets downgraded to a humdrum $90,000 party. So how will the rich get by? Let us know: greg@whiskeyandgunpowder.com Whiskey & Gunpowder
During tough times, many people are hit hard. We often hear about industries and sectors that are "recession proof." These are areas of the economy that cannot be negatively affected by a recession for a variety of reasons. Either they exist in an area where demand is constant, or their business model is such that a slower economy can do little to derail them. But have you heard about recession proof people yet? These are the people that no matter how bad things get, they are able to maintain their current lifestyle for one simple reason: They can still afford it. ~~~~~~~~~~~~~Special~~~~~~~~~~~~~ Buying Shares for a Fraction of the Price Can't afford the best performing blue chip stocks out there? Well now it doesn't matter. You can buy shares of some of the world's top companies for as little as a tenth of the share price. And yeah, you still get all the gains. If you don't think it's for real, just click here and see how it works… ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ If you've got enough money, a small percentage rise in inflation isn't going to break your bank. And I'm not just talking about the upper-middle class family in the big house down the street. Even those people are thinking about home equity and capital gains taxes. I'm talking about the guys cruising around on 60-foot yachts, on their way to an island not found on maps, eating some rare and exquisite delicacy we haven't heard of yet. In short, I'm talking about real wealth. The kind of luxury and decadence once reserved for a king and his heirs. Ultra-High-Wealth Individuals During a recent Agora Financial editorial meeting in Baltimore, one editor talked about the buying habits of people called "ultra-high-wealth individuals" (UHWIs). These people are not just rich, but really rich. They embody the old maxim that "If you have to ask, you can't afford it." UHWIs are a fast-growing cadre, and not just in the U.S. and Europe. There are rapidly increasing numbers of UHWIs in Russia, Asia, South America, Africa and, of course, the Middle East. And there are discernable investment ideas in this. UHWIs buy planes, trains, automobiles, fancy houses and all other sorts of bejeweled bling. UHWIs have enough money to not worry about energy prices. They do not know scarcity. Because how can anything be scarce when you have seemingly unlimited means? Some people worry about gold prices as a hedge against a falling dollar. Others worry about gold prices because they are installing a new solid-gold bathtub in one of their several master bathrooms. And others aren't worrying about the price at all. If food prices go up 20% or 30%, it means nothing to people with money. But it means everything to those billion or so who earn about $1 per day. So UHWIs do not know scarcity. ~~~~~~~~~~~~~Special~~~~~~~~~~~~~ A Guest Pass to the Millionaire's Market You only have a week left if you still want to get into the millionaire's market. This is the market where some investors pay $5.8 million just to get in. This is one of the best-kept secrets on Wall Street, and for the next seven days, it's open to you. This may be your only chance to see what it's like on the inside, and put away cash like the big shots. Click here to collect your pass… ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Still, do you remember this scene in Titanic? The rich guy offered a wad of cash to one of the ship's crew for a seat in the lifeboat. The crewman smacked the wad away and said, "Your money's no good anymore." But our civilization could never get to that point, right? "Different from You and Me" In 1926, the great writer F. Scott Fitzgerald published one of his most famous stories, The Rich Boy. The narrator begins with words that have become very famous. "Let me tell you about the very rich," says the narrator. "They are different from you and me." Later on, Ernest Hemingway added his own spin to that comment by noting, "Yes, they have more money." The rich may or may not be all that different from you and me in some fundamental ways. But one thing is for sure. Many of these UHWIs are making their money via the recent increases in the prices of energy and natural resources. So rising costs for energy, and the increasing scarcity of resources, have consequences for some fortunate few. Now that may be the main difference, and something for many investors to think about. While scarcity can certainly hurt your investment portfolio, and even alter your lifestyle, there is always opportunity lying within scarcity. Of course, nothing is free, and you need to know where to look, but as goods become scarce, opportunities and windows will begin to present themselves. And while I can't promise you a new life of helicopter rides and exotic vacation spots, I certainly can offer you some helpful insight and observations. You just need to keep your eyes open… Until we meet again, P.S.: In case you're wondering what kind of energy and resource plays these rich guys are seizing, I've got a few gems for you to consider. The readers of my resource letter, Energy and Scarcity Investor, have just gotten their first crack at these picks and have already seen dividends from their investment. Click here to see the upcoming plays I'm working on… |
Whiskey & Gunpowder Special Reports $1,000 Gold and Rising... 5 Entirely New Ways To Play the Gold Trend The 10 Shocking Reasons for China's Pollution Problem Geothermal Energy: Investment in the Future Here's One Coal Stock That's Set to Skyrocket Investing in Exchange Traded Funds The Real Story Behind the True Gold Bull Market If someone forwarded you this copy, please look here to start your own subscription. Wanna let us know what you thought of today's issue? Now you can... click on this link. Whiskey & Gunpowder is a free e-mail service brought to you by a team of rebellious brigands. If you have not already done so, please click here to confirm your subscription. This will help us ensure you get every Whiskey & Gunpowder without interruption. Are you having trouble receiving your Whiskey & Gunpowder? You can ensure its arrival in your mailbox here. Please note: we sent this e-mail to lemmetry@gmail.com because you subscribed to this service. To end your Whiskey & Gunpowder e-mail subscription, click here. Nothing in this e-mail should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice.We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of a printed-only publication prior to following an initial recommendation. Any investments recommended in this letter should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company. © 2008 Agora Financial, LLC. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This newsletter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the World Wide Web), in whole or in part, is strictly prohibited without the express written permission of Agora Financial, LLC. 808 Saint Paul Street, Baltimore MD 21202. |
