The Little Book of Bull Moves in Bear Markets: How to Keep Your Portfolio Up When the Market Is Down

by Peter D. Schiff

Book Overview

In the wake of falling stock and real-estate prices, the American economy is poised for a decade-long bear market, so says Peter Schiff. After he accurately predicted the current market turmoil, savvy... This description may be from another edition of this product.

• Format: Hardcover
• Language: English
• ISBN: 047038378X
• ISBN13: 9780470383780
• Release Date: October 2008
• Publisher: Wiley
• Length: 263 Pages
• Weight: 0.75 lbs.
• Dimensions: 1.1" x 5.3" x 7.3"

Customer Reviews

Foreign value investing, you need to be an expert to futures trade, return of a commodity bull

Dollar Decline: 1. Invest in foreign companies with a. high dividend earnings b. participating in global exports c. part of an economy that is growing (China, India, Brazil, Russia, Mexico). 2. If foreign currency is spent in the American market place, foreign dollars compete with domestic dollars sending prices higher. 3. Foreigners bought dollars. Foreign currency is converted to dollars to buy items in the American Market. As demand increases, dollar price increases. 4. Efforts to combat recession through stimulus measures mean more money chasing a given supply of goods, inflation. 5. The dollar will decline even though interest rates will inevitability rise. A nontraditional investment approach is required, getting out of the US dollar and into commodities, precious metals, and equities in foreign countries. 6. Timing when to invest was more critical than if to invest. As the global economy dropped into recession, foreign countries spent heavily to subsidize the dollar and massive buying of the dollar occurred. The perception was the US economy was the safe haven to move money. Foreign equities values dropped off sharply, as the recession deepened. 7. We have to compare changes in nominal prices to price changes in commodities (Precious Metals, Agriculture commodities). Commodities correctly adjust to inflation. Commodity price inflation is the standard by which to measure prices. 8. Foreigners accumulate dollars. If foreigners spend their dollars to buy American companies through sovereign wealth funds then earnings streams will be diverted back to foreign owners. 9. How to foreign governments adjust their currencies? Foreign government buy dollars (Buy), invest in US treasuries (Loan), and sell their currency on the foreign exchange (Trade). Adjusting the currencies is a way to export inflation. Foreign currencies gain less value against the dollar. 10. Rising import costs occurs simultaneously as the dollar value drops, along with the standard of living in America. 11. Prices rise as the result of the fed printing money. Rising energy prices increases inflation indexes. 12. As commodity prices rise then all currencies are losing value. The dollar was losing value faster than the euro but the euro, also was losing value. 13. As more agriculture products are produced, prices should be falling. 14. True economic growth causes prices to fall. Growth means produces are cheaper, unemployment low, and output increasing. 15. A recession sheds government debt. Debt can be temporary. Shed the debt and growth will resume. 16. The Inflation rate could be 8-10 percent. US Gross Domestic Product (GDP) is 2-3 percent. US manufacturing exports are growing. National Debt health is measured as a percentage of GDP. 17. Productivity measures the amount of consumer goods (Output) a business is capable of producing in a given time. 18. Unemployment rates exclude long-term unemployment counts. The result is over optimistic employment views. 1

When the government takes the capital out of Capitalism, the only signal left is static.

Mr. Schiff's new book is a follow up to Crash Proof. I bought six copies of that book, because it was my introduction to real economics and I wanted to share it. Both his books are important because they accurately describe economic function in the context of what is happening now in our markets. He understands what is transpiring and warns people in advance. Protecting yourself from the economic forces now playing out is the focus of his work, not the full blown explanation of economics in general. For that, I recommend Economics in One Lesson, so that you may be fully educated on the subject. Read it as many times as you need to. The foreword to Bull Moves is by Marc Faber, who endorses the common sense approach for the long term. The book's introduction warns of the inevitable downturn of an economy that was only possible through speculation borne of low interest rates. There is now no doubt that we are in that recession. The first chapters talk about the loss of America's purchasing power. The 1950's were a healthy economic time, because we produced goods that went around the world. High rates of production coupled with Reserve Currency Status gave the dollar an unbeatable edge back then. He then tracks reasons for the dollars' demise over time. He clarifies what inflation truly is. Unfortunately, most people don't understand it and how deadly it is. I don't like the way he explains Bretton Woods, and this is the second time he's done it in this manner. Bretton Woods was a poor excuse for a metallic standard and doomed to fail. Therefore it is my opinion that it was a dysfunctional group effort with multiple culprit nations. "My country's name is France and I'm a central banker." "Hi France." Mr. Schiff's theory of decoupling hasn't yet come true. It probably will, but I have to wonder after the recent worldwide interest rate reduction, if every central banker will see their citizens lose it all in their efforts to stick to the modern planned economy mantra. Additionally, the one prediction from his last book that is still unfulfilled is about the bond market. US Government bonds comprise the last bubble yet to feel the smack down from Adam Smith's invisible pimp hand. Chapter three steers you through the confusion of government statistics. After reading about it, you'll finally realize what the government isn't telling you with their numbers. Chapter four explains historic market cycles and tells you how to restructure your investments. Chapter five is about investing in commodities. Let's take a breather shall we... Chapter six is specifically about gold and silver. He tells you about the different ways to invest and what to avoid. Seven gets you acquainted with investing in foreign countries and companies. Eight is about stable foreign economies that are his favorite to invest in. Nine is about how and where to invest in emerging markets. Currently, there are big problems in the foreign markets, but again

A peek into the future

Another masterpiece from one of the very few economists that get it right year after year. His first book was eye-opening and this one is no different. His ability to put truth above anything distinguishes Mr. Schiff from mainstream media counterparts. If you like to being spoon-fed lies watch Kudlow & Company...if you want the truth, this book is a good place to start.

They laughed at him with his negative outlook several years ago.

Gold, commodities, foreign companies with little exposure to the USA. That is the gist of Peter Schiff's investing recommendations. Why? He's not unpatriotic, but rational in his thinking that the US has lost its way through outsourcing production of goods, and overwhelmingly becoming a country of service oriented personnel. We make nothing, we buy most, and are up to our ears in debt, which will take its toll now and in the future on the dollar. There are several well known "Doctor Dooms" around. Rubini, Jim Rogers, Jim Sinclair, and Peter Schiff. I never thought that I would ever be a bear on the US stock market, until I started reading not only Peter Schiffs books and the others, but books on derivatives and other financial inventions, that could bring markets down entirely, and for a while. Impossible you say? If you think so, you need to read this. The Dow was down again today nearly 700 points. Maria Bartiromo is starting to call this a market crash. I stayed up the whole night reading this book. The writing flows and points are great, except when he recommends that you buy a gun, and learn how to use it- maybe he's correct there too. He's half tongue-in-cheek. He makes one recommendation that he says will make the dot.com bubble look like "warming up", during the next decade. Curious? Ans: gold producer stocks. Great book.