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J borneman metals10.2014

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Slidedeck to accompany speech at METals International re: investment strategies given upcoming pivot. Focus on MDEF™ (Metals, Defense, Energy and Food) investment strategy.

Publicado en: Economía y finanzas
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J borneman metals10.2014

  1. 1. Protecting Assets During Global Economic Upheaval Jeffrey C. Borneman, CEO Presentation at METals International October 18, 2014
  2. 2. What do we mean by a Pivot? A Pivot is an event or closely aligned series of events which will change the current human paradigm: most likely a military conflict that a direct effect on our financial, geopolitical, military and agricultural reality. A Pivot has the potential to severely impact the wealth of those who remain unprepared.
  3. 3. What is the MDEF™ Investment Strategy? At the most basic level, Metals, Defense, Energy and Food are the only resources mankind has consistently used, coveted, and warred over. From an investor standpoint it is useful to know that control of MDEF is the most guarded secret by the powers that be. Control of these resources has guided and shaped mankind to the present time. The MDEF™ investment strategy leverages history and human nature as well as geopolitical analysis and knowledge to ensure timely investment in the the resources that will always be in DEMAND.
  4. 4. METALS
  5. 5. Why Metals? There have been instances in human history when people used sticks, shells, stones or ability to trade goods and services. However, precious metals, iron, copper and even tin have used as a means of exchange with great success for centuries.
  6. 6. DEFENSE
  7. 7. Why Defense? Throughout history the capacity for self defense has been critical for any kind of economic success. From the iron spear through the atomic age and drones, our ability to defend ourselves has relied on our ability to manipulate metals in one fashion or another. Most wars target the resources of others. War has also been the best business around for centuries – especially if one controls vast sums of valuable metals. Wars have begun for other reasons as well: to deflect a population’s attention from failed leadership or retaliation of unpaid excessive debt. Currently, it is these last two examples that should concern us most as investors.
  8. 8. ENERGY
  9. 9. Why Energy? Energy means different things to different people. Over the millennia, it has meant wood or coal fires, steam, solar or nuclear electric generation. Since the industrial revolution, access to cheap and abundant oil has been the key to all achievement. Wars have been fought for it and have been lost for lack of it. Nothing in our current world system is grown, manufactured, transported or “works” without energy from oil – period.
  10. 10. FOOD
  11. 11. Why Food? Well into the industrial revolution, most of humankind had spent most of its time growing, harvesting and storing food. We cannot live long or produce much else without a steady and healthy intake of food. The world population has exploded over the last century primarily due to increased food production. However, food scarcity is not uncommon at times. Manufactured famines have killed millions of people in both Europe and the Far East in just the past century. We take for granted the over-abundance of cheap food at our local supermarkets, and know the better part of the world survives on a fraction of the quality and quantity of the average American diet. Last year’s world-wide drought was considered the second costliest natural disaster in US history. Prices in the US jumped; portions shrank, and; profit margins were squeezed. Think of the ‘just-in-time’ delivery system now employed by every industry in America. Your local suppermarket carries only a two-day supply of most foodstuffs. If there were an interruption of the supply-chain due to fuel availability/costs or natural disaster, for example, how much and how fast would food costs rise?
  12. 12. Signs of a Pivot-The reality of current unemployment
  13. 13. At what point does food inflation become untenable?
  14. 14. Incentive for War? Witness NATO Creep…
  15. 15. The link between oil and military conflict remains consistent
  16. 16. The future of energy-post pivot
  17. 17. Why MDEF™? Metals, Defense, Energy and Food It is now mid-2014 and I’m asked constantly what to expect next? Let me be frank: My view of this market is short-term bullish and long-term catastrophic. My goal is to have my client monies primarily in MDEF™stocks as the currency of survival has never changed. We all must have an alternative to fiat money (metals); be able to stand against some outside force for ourselves and loved ones (defense); have electricity and transportation (energy); and, be able to feed ourselves (food). It is just that simple. This is why MDEF™ sectors have historically retained their values while all other asset classes/financial instruments are discounted at varying rates.
  18. 18. Surviving a Pivot with MDEF™? Metals, Defense, Energy and Food It is now mid-2014 and I’m asked constantly what to expect next? Let me be frank: My view of this market is short-term bullish and long-term catastrophic. My goal is to have my client monies primarily in MDEF™stocks as the currency-of-survival has never changed. We all must have an alternative to fiat money (metals); be able to stand against some outside force for ourselves and loved ones (defense); have electricity and transportation (energy); and, be able to feed ourselves (food). It is just that simple. This is why MDEF™ sectors have historically retained their values while all other asset classes/financial instruments are discounted at varying rates.
  19. 19. What will it take to survive a Pivot? A return to investment in what individuals, cities, states and nations must have access to regardless of circumstances. Again:
  20. 20. In Essence: As company earnings for non-essential goods and service diminish, as DEMAND for them contracts, investing capital races to where DEMAND is strong and rising. While the MDEF™ strategy offers no guarantees of performance, capital always seeks areas of DEMAND first. Remember that money (capital) does not "make the world go 'round." DEMAND is the force that commands the capital; and even in the best of times, markets are driven by the human psychology of fear and greed. The coming inflation and market cycles must be treated like combat – not unlike those Marines on the landing craft who discarded all unnecessary items in favor of tools to aid their survival. These will be the cold equations of crisis investing.

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