1. Best Performing Investment Sector
Not surprising, precious metals had another great year thanks to the Fed’s policy of quantitative easing (aka creating money out of thin air). As inflation begins to become a real problem due to the Fed increasing the amount of money in circulation, precious metals are clearly the wave to ride. With as much talk as there has been about gold, the real winner this year was silver. Many people consider silver to be the poor man’s gold and thousands of new investors have jumped on the silver bandwagon. ProShares Ultra Silver fund added more than 100% this year. Gold funds added 30% and some as much as 50% for the year. Another fund that did well was the Fidelity Select Automotive Fund adding nearly 40% for the year.
2. Worst Performing Investment Sector
In a year where the Dow Jones Industrial Average gained 11% and the S&P 500 Index added 13% there were plenty of areas that an investor could have made a respectable return. This year had no real stand-out as far as a worst performing sector, however. Many funds investing in Europe were hit hard by the financial meltdown that has been spreading throughout the region. Additionally, mutual funds heavily invested in climate friendly technology went out of favor as cap-and-trade fell by the wayside.
3. Biggest Under Reported Story Of 2010
Although it seems to have only been reported as a postscript, the recovery of nearly 50% of the money lost in the Bernard Madoff scheme was a truly unexpected surprise. I, for one, am growing more and more suspect of a conspiracy that is wider than just Madoff and his family in all of this. The widow of Jeffrey Picower recently decided to give back more than $7 billion of profits her husband made while investing with Madoff. Picower died suspiciously last year drowning in his backyard swimming pool. Madoff’s own son, Mark, committed suicide earlier this month. Mysteriously ‘found money’ in the billions, people dying suspicious deaths, all leave this reporter with a lot of questions. No one believes that Madoff could have pulled this off without a lot of help, maybe even help that goes as high up as individuals within the Securities and Exchange Commission. If enough money is returned to the investors, maybe those hiding in the shadows on this scheme can comfortably stay in hiding. There are hundreds of thousands of investors that lost 50% or more of their money in legitimate investments during the last several years. This seems like quite a remarkable recovery, maybe a bit too remarkable.
4. A True Blood For Oil Plot Stays Mostly Under The Radar Screen
On December 21, 1988 Pan Am flight 103 exploded over Lockerbie, Scotland and 270 people were killed (most were American). The only person convicted of involvement in the bombing was Abdelbaset Ali Mohmed Al Megrahi, a Libyan citizen. For humanitarian reasons, Al Megrahi was released from a Scottish prison 18 months ago to ‘go home to die’ in his home country of Libya. We were told he had three to nine months to live and was dying from prostate cancer. Some 16 months later, Megrahi is still alive and "reportedly living in a luxury villa in Tripoli," according to a report released this month by Senators Robert Menendez, Chuck Schumer, Kirsten Gillibrand, and Frank Lautenberg. The report even seems to indicate that our own government made little more than a minor gesture of disapproval prior to the planned release. Follow the money and you will learn the story behind the story. The release of Al Megrahi seems to have been the linchpin in an oil deal between British Petroleum and the Libyan government. This is perhaps one of the most evil events I have witnessed in my lifetime.
5. Biggest Prediction For 2011
I can make this prediction without really sticking my neck out too far. This year we will see the beginning of the financial implosion of many state and local governments. States like Illinois and California will likely be the first and the dominos will begin to fall nationwide. Municipal bond defaults, government pension failures, and mass state and city layoffs are just around the corner. Much credit should be given to Meredith Whitney, a financial analyst that has been investing a great deal of time evaluating just how bad things may get for state and local municipalities. Take a look at the video below:
ChristianMoney.com has added two new blogs; one on Christian investing and another on biblical prophecy and financial survival. Both blogs can be accessed from the home page of ChristianMoney.com. We continue to expand our training on how to make money working on the Internet. I feel that it is more important than ever for people to learn alternative ways of earning money. Additionally, Robert Yetman and I plan to release a new book this year, Biometrics and The Coming Mark Of The Beast.
I truly thank you for your support and interest in our best efforts to keep you informed and help you to make the most of God’s money!
Helping you make the most of God’s money!