Survival

I’d like to personally welcome you to NickGuarino.com, the only online publication of its kind in the world. I mean that sincerely.

We have two major goals for you:

(1) to help you protect as much of your wealth as is possible; and

(2) to show you practical ways you (along with other small investors) could make handsome potential profits when the global markets crash.

First, I would like to go over a few practical matters before I get into the trades. NickGuarino.com is unique in that we include a lot of very old “survivalist” information that has kept the very wealthy alive for generations – techniques and strategies for avoiding the inevitable dangers, from both governments and individuals, that come with having accumulated savings.

For generations, the very wealthy have lived by certain fundamental principles of wealth preservation and personal survival that the masses knew little about. I would like to share a little bit of that information with you before we get started.

The secret four-letter word that
could make you fabulously wealthy!

Everyone knows how to BUY in a bubble market like we’re in now. As we’ve seen over the past decade or more, when a bubble market goes up and you’re buying, you’re in tall cotton. You’re making a lot of money. But what very few investors understand is this. You can make FAR MORE money in a falling market – and you make it in a matter of a few weeks, not months or years.

You see, the richest, most successful investors on Wall Street have a secret. It’s a secret unknown to 99.9% of investors… yet it’s what made the fortunes of America’s wealthiest families. It’s a secret that is contained in a simple four-letter word: SELL.

Short-selling is Aladdin’s Lamp, the Holy Grail and the goose that lays the golden egg all rolled into one. The techniques of short-selling are fairly simple… but they’re NOT something your broker is going to tell you about. He will do his damnedest to discourage you. In fact, it’s almost impossible for you to learn how to sell short correctly — until now.

The vast majority of speculations you will see involve a selling strategy.

In my early days in this business, I made several fortunes SELLING gold and silver. Now, you might want to ask why? Well, because those were high priced markets that were doomed to go down in price – as they are now again. They were bubble markets. And there was little else to sell. Currencies couldn’t be traded until Benton Woods was overturned because currency values were fixed. Nothing to sell there. The stock market was rigged by law to be a buyer’s only game. You could sell a few stocks but anyone who did sell stocks was punished severely. One day in the mid-1980s there was the launch of a brand-new financial instrument that allows you to trade a basket of stocks. That made it a wide-open game. And in the past year or two, with the creation of commodities-oriented Exchange Traded Funds (ETFs), we now have the same situation. It’s now possible for the small investor to easily SELL a bubble market without having to trade futures and take on the enormous leveraged risks that futures entail.

So, the basis of almost all of our recommendations – both conservative and speculative involves SELLING. Even when we recommend buying a particular ETF it’s because it’s an inverse fund that goes up in value when a market goes down.

We’ll look at the conservative recommendations first.

Conservative Recommendation #1:
Sell ALL stocks, stock mutual funds (except for the ones we recommend), bonds and other investments.

When everyone else is getting wiped out and going broke, you become rich by just keeping what you have. The first part of the forbidden secret of NickGuarino.com is not to get in their clutches. If you know there’s a gang of robbers down the street and they’re robbing everybody who goes by, don’t go there. Don’t expose yourself don’t give them the opportunity to steal your money.
The first thing you should do, therefore, is to cash in all mutual funds, money market funds, every fund you’ve got. The lives of almost everyone you know — the vast riches of America — are now tied into one single investment: stock market mutual funds. Funds have virtually no regulation. Do not take my warnings lightly. This mutual fund insanity will destroy most people you know. It will alter the financial course of the nation. Those who know what to do will become millionaires. Those trusting souls who got sucked in will be broke.

Conservative Recommendation #2:
SELL and Get Out of All Debt

The most important thing you must do… after you SELL all of your stocks and mutual funds… is to get out of debt. And I mean completely out of debt. That means you pay off ALL of your credit cards. Pay off the loan on your car. Go bankrupt if you have to. Sell everything. Pay everything off. Get out of debt and don’t run up any more. Why? In a depression, the dollar becomes more valuable. That item you’re buying is dropping in price, so you could have bought it cheaper anyway. Then you add the financing. Even though interest rates are at record lows, if they gave you free money like they’re doing on the cars, you’re still paying too much. All those people who bought cars right now in this big boom because there’s zero-percent financing for three and four years, no interest at all on the loan? In another year they’ll be buying a car for 25% less. That’s the model.

Conservative Recommendation #3:
SELL All Real Estate Immediately!

Under no circumstances should you finance real estate. If you have to finance real estate, sell it. I know that’s going to be difficult to accept. I know that most of you are in a position so you’ll say, “It’s our home, Martha! How could we possibly give it up?” Don’t become emotional about your money, investing or wealth affairs. Debt will be a killer in this depression. When the sheriff comes and auctions off your home, you will understand very clearly what I mean. During the Great Depression, people lost their homes, their farms and their real estate because they couldn’t pay the taxes. And the taxes were not as high as they are now. We are headed for just such a time.

Let me repeat: If you can’t own your house for cash, get out of it. Now! Sell it. Sell it at a loss. Take your licking. Better to rent. Now, these are not alien concepts. This is how people have lived for centuries. The idea of financing your own home is something relatively new. The idea of 20- to 30-year financing was unheard of in the past. By the time you’re done, you pay for your home 3 times through interest.

You have to understand that you have to change your life to conform to the times that you live in. They are very dangerous times indeed. Now the game has changed. Look, I don’t care if it’s not common knowledge or widely accepted. By the time the masses figure it out, they will be wiped out once again. The cold hard facts are that people who held savings got hurt during the great inflationary period of the last 3 decades. The value of their savings decreased. Same with people who held things for cash. That’s because inflation and hot demand caused prices to rise.

Conservative Recommendation #4:
SELL All Your Junk and Raise as
Much CASH as Possible!

You want to raise cash. Lots and lots of cash. I urge you to keep up to 10% as a minimum of your liquid net worth in green cash – actual bills stuffed in your mattress. Lots of it. Don’t give me the excuse that you’re afraid of getting robbed. You already keep your wife’s diamond ring at home. You have your twenty-thousand-dollar car. You have your stereo, your electronics. You have lots of things that are very valuable.

Of course, you do not want to tell everyone that you’re putting cash under the mattress. Be smart about it. But you definitely want to preserve your wealth by holding a large amount of cash in your own possession. You can buy a safe at Home Depot. Discreetly pay for it with cash: do not use your credit card. Preferably buy the safe at a store where you’re not known. Do not have a safe company (or anyone else) install your safe for you. Install it yourself, in your house, in a hidden place. There’s an easy way to make sure no one can carry off your safe. Simply pile a mound of concrete on top of it. You can get ready-mix concrete in a bag. Just add water and stir. Be sure you burn the box the safe came in.

You should have cash in the currency of your realm. For example, if you are an American living in America, that would be dollars. I recommend the new and I stress NEW funny-looking $50 and $100 bills.

You must be able to get to this cash immediately. It is an essential part of my recommended portfolio. For hundreds of years, people used to keep money in what they called the “treasury” in their castles. You need gold. You need currency. You need to keep foreign currency. You should have enough cash on hand to cover at least six months of your living expenses and to be able to snap up the bargains that will be coming along. People who lose their life savings in mutual funds will be desperate for cash. They will sell their treasures for pennies on the dollar.

I can envision a situation where you won’t be able to get at your money in banks. This already happened during the Great Depression: they called them “bank holidays.” Although the risk is remote in the immediate term, for the long term it is a real possibility.

The important thing about cash is this: Make sure you can prove where the cash came from. There is nothing illegal in having cash. There is nothing illegal in dealing with cash. But you have to be able to prove that this cash was legitimately obtained and that you paid taxes on it. One great way to do this is to go down to your bank and take cash out of your checking account. When they ask you to fill out a form, fill it out. Tell them: “I like to have cash around. I’m an old-fashioned guy.” If there is any question, you can say that this is cash I made and earned and paid taxes on. Here is the check where I took it out of the bank. The bank account where my earnings go into. Here are my tax forms that shows that this amount of money is commensurate with what my income has been for a number of years.

Once you’ve done all that, it’s time to get clever. You don’t have to have cash in your vault — but it’s got to be someone’s vault, and it’s got to be somewhere, maybe even a lot of somewheres. You’ve heard the stories about the Great Depression where people who had cash in their mattresses were able to buy things at bargain prices. But in the days of drug dealing and currency controls, it’s not quite as simple as it once was. I like having cash around where I can explain where it came from — where I can demonstrate that it was legitimate, honest, hard-earned money on which taxes were paid. As long as you do that, cash is perfectly acceptable.

Conservative Recommendation #5:
If You’re Wealthy, Hold Some of Your Cash in Foreign Currencies

On balance, the dollar is going to continue falling for the next 20 years. America’s balance of trade disaster and the coming global stock market wipeout guarantee this. You absolutely should diversify into foreign currencies.

My favorite currency is obviously the Euro. The dollar will lose half its value or more against the Euro in the coming years. When you look at the COMBINED debt of the U.S. compared to that of the European Union, it’s easy to see why:

United States: 480% of GDP

European Union: 116% of GDP

So let me ask you a simple question where the hell do you want to keep your wealth? With that thought in mind, I repeat my often-repeated refrain: Get the hell out of dollars! If you want to fumble around and pretend you don’t know what to do or how to do it, okay. But I repeat: Stop JERKING around and get into Euros in European banks.

I often hear the question: how do I do that? The answer is simple enough: Go to Europe. Now let’s be frank here. If that is too tall an order or too expensive for you to do, then the cold, hard truth is that you probably don’t have enough money to make it worthwhile. But if you are in the happy position of having surplus wealth now, as liquid cash savings, then I urge you to get MOST of your core wealth out of dollars and into Euros.

If you don’t want to travel to Europe, an easy way to invest in foreign currencies is to go to an international bank. Tell them you plan on traveling overseas at some point, and would like some currencies. Still another way is go to an international airport. They have foreign exchange booths. You can buy Euros there. As is often the case, knowledge is power. Check the currency exchange rates, before you make any transactions. Being a knowledgeable buyer can save you a lot of money. You can put those foreign currencies under the floorboards with your gold coins and cash U.S. dollars.

My Lunatic Survivalist Strategies That Only a Rogue Criminal Outlaw Trader Like Me Would Know!

In this section, I’m going to cover things like food, clothing, shelter, communications and transportation. Those are the five things necessary for survival in our modern era. They are not expensive. Whether you have a net worth of fifty thousand dollars or fifty million dollars — whether you make twenty thousand dollars a year or five million — these things apply to you.

I have lived many years in various parts of the world. Sometimes hostile places, sometimes poor places, sometimes dangerous places. I have been through many natural disasters, and I mean big ones. And I have also been in what only can be described as war zones. You learn certain skills, if you live in those places. Especially if you become a target.

Your business. Your job. Your retirement. Social Security will be there after the coming stock market wipe-out. So will government pensions. The Fed will see to that. Private pensions are a different matter altogether. You cannot count on them. During the 1970s and 1980s, pensions were grossly underfunded. Many major corporations had to put more cash into their pension funds, to bring them up to minimum standards. Thanks to the bubble stock market, companies have been able to take out that cash, and put stock in its place. People think their pension funds are solid. Nothing could be further from the truth. If your retirement plan is tied to stock or money market funds— and they all are — expect to take a big hit.

I recommend you cash in your retirement or pension plan now. Even if you must pay the tax consequences. Get out of any IRA, Keogh, 10K, retirement plan or pension fund. Put your money in insured C.D.’s, passbook savings accounts, 90-day U.S. T-bills, foreign currencies, gold, and cash — lots of cash (dollars, yen marks and soon Euros). Remember, during the last stock market depression, people who had cash in their mattress were kings.

I know of no mutual fund or money market fund that will not suffer huge losses in the crash. Money market funds use derivatives — even if they call themselves “Government Securities” funds. They, too, will suffer huge losses. Great sins have been committed as these fund entities slugged it out with each other to make the greatest yield. They have all played cutesy games with the money that will blow up in their faces.

Like my real estate recommendation, this is controversial. Many people don’t want to hear it. But pay your taxes on your retirement fund. You’re going to have to at some point, anyway. Get those funds under your personal control.

Real estate. I said this above but will say it again. Sell it. Sell it all. Sell every single piece of real estate you have, anywhere in the world. Rent, at least for the next several years. You can save a huge amount of money. When real estate crashes and bottoms out, you can buy back your house, your real estate, for literally pennies on the dollar.

Are you going to do this? Probably not. You probably love your house. But consider. In many real estate markets in the United States, three and four hundred thousand dollar houses rent for fifteen hundred dollars. 50% to 67% less than their market value. The landlord’s glad to see you. For those of you who want more modest houses, you’ll find that, as you go lower in value in houses, the closer they are to their true worth in renting.

If you cannot bear the thought of selling your house, remember it is not an investment. You are going to lose lots of money by holding it. All real estate in the U.S., bar none, is going to continue falling dramatically in price. You will see an eighty percent drop in real estate values from one end of America to the other.

So, here is the rule. If you love the house — and, you know, probably your wife does — and you do not owe any money on it, and you’re willing to ride through a big loss in that house, then it is okay to hang onto it. But if your house is an investment to you, or is part of your retirement plan, or if you owe a large amount of money on it, sell it now. Pay off the debt and rent.

Farm or country estate. Some of you may own a farm or country estate. That is part of your survival, not part of your real estate holdings. It has a different place in your life. It is a place of refuge. Your country home or estate is not an investment. Don’t look for it to give you a monetary return. It is another way you can make sure you control your destiny. I like that country estate. It could be a few acres; it could be a hundred. It could be in expensive parts of the country or in cheap parts. But I urge you own your own farm, country home or estate.

I’m a New York City kid, raised in one of the densest population centers in the world. But I learned that quality of life is a lot nicer and a lot easier to protect when you are outside the crush of these large metropolitan areas. I love cities, I really do. But you get a lot more house for a lot less money, either renting or buying, in the country. You also get a lot more security.

When the wipeout goes into high gear, cities are going to get ugly. Surveillance will be much more intense even than it is now. Many cities in America are putting in TV cameras on every street corner, like they do in England. You may notice that crime rates are much higher in the cities — by a factor of ten, or, in some cases, by a factor of 100. Cities have a lot more poor people who are likely to get hammered by this wipeout.

Guns. Let’s talk about guns. Recently, the U.S. Supreme Court affirmed that the Second Amendment really does assert a fundamental right to own a gun, even a handgun. If you’re an American, you’re blessed to live in a country with some of the most liberal gun laws there are. Absolutely, without a doubt, you should arm yourself. You might say, “I’d like to have a gun, but I’m afraid the kids are going to shoot themselves.” You need to educate them about using a gun. Eventually you’re going to give them a three-thousand-pound car to drive around in: a far more dangerous lethal weapon. Make sure your children are thoroughly schooled in the proper use of guns.

You can buy a gun cabinet. I strongly urge you do so. These are steel cabinets that you can store and lock your guns in. You can legally buy used guns out of a newspaper. You can also go to a gun show or a swap meet.

Try, as much as possible, to get guns that are not registered in your name. Do not break any law to do this. I can easily see gun confiscation in America, and in the not-so-distant future. Australia, which has a huge rural population, confiscated all semi-automatics in the hysteria after one unfortunate incident. As a result, crime rates have soared, just as many people predicted they would. I have no doubt guns will be confiscated in America. That is why I urge you to avoid, if possible, having guns registered in your name.

People who have a drinking or drug problem – or who have a bad temper they cannot control – should not own guns. For those people, owning a gun is more dangerous than not owning one. But if you’re a level-headed, responsible person, you should own guns.

Food. You should have some kind of food storage plan. Water storage, too. I know that sounds crazy to some of you. But I have kept a stockpile of food in my house all my life. It gives you a degree of comfort. Also, buying food in bulk quantities can save you a fortune on price.

Energy. Electrical supplies are generally very reliable. But just in case, you should have a generator. Especially if you’re putting food in a freezer. Let’s suppose you take me up on my suggestion. You buy a couple of chest freezers. You put them in the basement or a room off the kitchen. You can then buy the finest quality meats, and you have your meat cut the way you want. You might even make an arrangement with a farmer in your area to buy a carefully raised, premium piece of meat. You can get it butchered and wrapped for long-term storage in your freezer. You save a fortune over buying five steaks at a time at the local grocery store. You have higher quality meat. Plus you have six months or a year’s worth of meat in the freezer. Carefully stored, carefully wrapped and packaged so you know what it is.

I recommend you store beans, rice and grains. Keep them in airtight containers. Also your toiletries, your deodorant, your soap, your shampoos. All high-markup items. If you shop around for sales, and you buy in quantities, you can save lots of money. You should store away six months of the goods that come into your house, except for your perishable items (fresh fruits and vegetables). And in this day and age, frozen vegetables can be superb, especially with the quick-freezing techniques that now exist. Another great way to make sure you have the food you need, in time of crisis.

Let’s talk about water. I drink bottled water because I prefer to avoid chlorine. You can buy spring water as versus processed water, in five-gallon plastic jugs. Keep ten or twenty of those jugs in the basement. At any given time, you have a hundred gallons of drinking water in the house. You can use the water in rotation to keep it fresh.

Another part of your water storage is having a swimming pool. I love swimming pools. I have had indoor pools and outdoor pools in my homes. They are economical to build, especially if you shop the market. A pool in the backyard is a large source of water.

In your country estate, along with the pool you can build a pond. A few years ago a government program actually paid farmers to build ponds on their land. The ponds would be placed on the lowest part of the land to catch the runoff. If you have your country estate, build some ponds. They are better than ever and cheap to build. With the new plastic materials, you can line that pond so that the water doesn’t seep out through the bottom.