I wanted to communicate financial sanity to large numbers of my friends and clients across the country, keeping you up-to-date on the economy, and I have found a way: seminars by satellite, with two-way communication lines, designed to keep you informed on a bi-yearly basis!What a power base! The first conference, the FIRST NATIONAL PROSPERITY CONFERENCE, is scheduled for April 5 to be broadcast live from the Beverly Hilton Hotel in Los Angeles, CA to 20 locations across the United States with thousands expected to attend.
During this all-day seminar in a hotel in your area, you will have an opportunity to listen to such well-known and prosperous individuals. Plan ahead and keep that day open for your own personal enhancement and education in the financial and business world. If you intend to prosper, you must get fully hatted on prosperity. I’m excited about this event, and I hope you are too.
I will be speaking on short-range and long-range investment programs you should be following based on current economic trends. For those of you who feel you have little or no money to invest, I will also be covering ways to increase your cash flow. I have found the major difficulty that 90% of my friends and clients have with cash flow is really in assuming the identity that will help make them truly successful. I will cover this at some length in my talk, and this data has changed many people’s lives.
My advice is still full-steam ahead on real estate. I feel that at this point the interest rates will level off or start going down. I see levels again at 12 ½ to 14% for first trust deeds. Of course, this is not guaranteed, and I wouldn’t wait until it goes down before you buy, because if it goes down, you can expect to see a tremendous increase in the price of properties, especially in the metropolitan areas.
If interest rates go down, it won’t last long, possibly six to twelve months. And I do expect within the next 24 months that interest rates could climb back up to about a 25% level. The current rates could remain level for another six months. This is irrelevant for the buyer because we are in a good buying period.
It is very obvious that Reagan really wants to help control inflation, but I think he has much opposition from Volcker (Chairman of the Federal Reserve Board), over whom he has no control. So, no matter what efforts he makes, there is no certainty about what will happen – more inflation, recession, depression – who knows? All I can say is, become armed with data and protect yourself for any event.
My viewpoint has always stayed the same as far as silver and gold are concerned. If you are buying silver and gold, buy for the preservation of your capital, and buy it on a dollar-cost-average basis. Using dollar-cost-averaging, you invest continuously every week or month, regardless of the price level. Generally, when the market is moving downwards, most people feel it is time to get out. That is the reverse of the true consideration – That is the time to buy. Strangely enough, I see by statistics in my organization, that we have many more clients that sell silver and gold rather than buy when the market is moving down. Similarly, when the market is moving up or is very high, that’s when they think they should by buying.
In real estate right now, most people’s intention is to sell, because they are afraid of getting caught. I think it is the best time to buy when people want to sell. Why not use the same viewpoint with silver and gold? While others want out, this is the time to buy.
I have seen corrections (short downtrends before the statistics recover and continue to rise) like this happen again and again since 1972. This time, because of the last levels of highs, when silver and gold hit a certain low level, you will see large institutions that have been holding back from buying silver and gold, start to put large amounts of capital into it. You can well imagine what would happen to the price then.
I am not talking about purchasing silver and gold on speculation or making large purchases because of the potential upward swing. I am trying to have you maintain a steady flow toward the preservation of your capital on a dollar-cost-average basis, and in this way, be ahead of the game in the future, when silver hits $150, and gold hits $2,000 per ounce. You can feel confident that you have managed to stay above inflation, by being at cause not effect, and sticking to a set of financial program that includes real estate, and always a percentage of your income to hard money like silver and gold. And don’t forget my last letter, when I told you to invest in yourself. Read it if you haven’t.
We are well on our way in achieving our goals and purposes of flowing you power and giving you the truth about money and financial matters. This year, 1981, will be a special year for all of us to remember, and we at the R.G. Stewart and Company are here to help you increase your net worth.
With much admiration,
Richard G. Stewart Jr.
