How To Best Protect Your Wealth in 2020 — Doug Casey

A recession is ‘long overdue’ and investors need to start hedging against it, this according to one famed investor.

“It should’ve happened years ago at this point but the state, through the federal reserve, has continued to print up hundreds of billions and trillions of currency units,” Doug Casey, founder of Casey Research and internationalman.com, told AGXm this week.

“It has allowed the artificial boom to go on much longer than it should have. There’s every chance in the world that 2020 it’s going to go over the edge so hold onto your hat.”

According to Casey, diversification is pivotal for investors to protect their wealth.

“It’s very important to have political and geographic diversification because you just don’t know what could actually happen. Stay away from markets that are in trouble territory,” he noted.

“I have no interest in the stock market. I have less interest in the bond market, which is in a hyper bubble. And, since real estate floats on a sea of debt, I’m on the sell side of real estate.”

So, what is Doug Casey liking?

For one, he is still bullish on commodities and mining equities.

“The stocks of small mining companies are the most volatile securities on the face of the planet but right now, they’re very cheap,” he said.

“Being a bull of the metals, it’s a great time to be in them. In the past when a bull market gets into gear, the whole market for junior miners goes 10–1, some 100–1 and some more than that. I think it’s going to happen again.”

Casey said he is also a believer in Bitcoin and is starting to like other cryptocurrencies.

“There are 5 characteristics to good money: durable, divisible, convenient, consistent and it has got to have use value,” he explained.

“I couldn’t see the use value of Bitcoin, but it became clear to me that it is a transfer mechanism. It is a way to hold a tradable asset without using the banking system and to move it across borders without using the banking system.”

The precious metals bull said he is “all for” gold- or silver-backed cryptos as well, adding that they “make a lot of sense.”

As a final note, Casey said investors should find ways to build wealth outside of fiat currencies.

“I’m sure that all the world’s fiat currencies — which are issued by governments and central banks — are all going to reach their intrinsic value in the years to come and their intrinsic value is essentially zero,” he said.

“So, you have got to move out of these things now while the getting’s good.”