I have a tiny apology for you today…
On Monday, I gave you a link to a bond article I wrote. I really think it’s important for all investors to understand (or really anyone who wants to stay aware of what’s going on in the world), so read it if you haven’t already.
Also, please forward or refer anyone you know to read the article. I truly believe that everyone should know about this issue. Even if nothing ever happens (which I believe something significant will happen), the worst case is that you and your friends learn about a portion of the market that is rarely talked about.
My apology is that I am going to tell you more of the bond story later on, not today.
This is because I have something way more entertaining for you today – and potentially more profitable for individual investors.
If you’ve been subscribed for any time now, you’ve probably found that I talk about a lot of different things. Sometimes I talk about stocks, sometimes I talk about silver, sometimes I talk about real estate, and sometimes I talk about becoming a better person.
One thing that I really take pride in, is being able to shift gears very quickly between different topics. It allows me to stay on my toes and then share my best ideas with you. It also allows me to be a nimble investor who is never stuck in one position.
And that brings me to art.
On Monday, there was an article featured on Bloomberg entitled, “That $100,000 Painting Bought to Flip Is Now Worth About $20,000.”
When I read the headline I almost blew cereal out my nose.
The article profiles art ‘investors’ who were buying paintings from well known trendy young artists.
The painting that the article’s title was referring to was by Hugh Scott-Douglas. Hugh, born in 1988, is actually a very well known artist with many of his pieces fetching well over $100,000 USD.
The reason why I almost blew cereal out my nose has nothing to do with the actual art. I just found it extremely ironic about what these investors were doing. I wrote a guide about buying art for dirt cheap, which I still have available to anyone who wants it for free.
These investors broke the first rule about art investing – you’re supposed to buy it for dirt cheap!
What these art buyers were doing was identifying artists and paintings that had skyrocketed in price over the past couple of years. They expected the trend to continue, so they shelled out big bucks expecting even bigger returns.
Guess what happens when you chase value to the top? YOU GET BURNED.
I can’t think of a better comparison for our current world economy. There are lots of areas of the market where investors are chasing value. There is definitely a chance that these investors can make money in the short term.
There is an equal chance that they could lose it all if they continue to chase value to the top.
The bigger picture here is to always be looking for undervalued assets that are not being bid up in price.
Silver, grains, and uranium look to have more upside than downside. Conversely, the stock market, real estate, and bonds seem to have more downside than upside. I’ll continue the bond idea on Friday.
If you’d like a free copy of the “How To Acquire Valuable Assets for Rock Bottom Prices” you have to email me and ask for it. ( email@example.com ). It’s a lot of work for me to individually email each of you back, but it gives me a chance to meet you.