Hi ,

While on the campaign trail in 1972, Hunter S. Thompson issued a dire warning that is more true today than it ever has been.

He warned us about what would happen to the country if we continued along the destructive path he noticed nearly 45 years ago. He observed that if Americans continued to accept “lesser of two evilism” the only thing we’d end up with would be increased evil.

Hunter S. Thompsonm was right. Here’s the quote:

That’s the real issue this time,” he said. “Beating Nixon. It’s hard to even guess how much damage those bastards will do if they get in for another four years.”

The argument was familiar, I had even made it myself, here and there, but I was beginning to sense something very depressing about it. How many more of these goddamn elections are we going to have to write off as lame, but “regrettably necessary” holding actions? And how many more of these stinking double-downer sideshows will we have to go through before we can get ourselves straight enough to put together some kind of national election that will give me and the at least 20 million people I tend to agree with a chance to vote for something, instead of always being faced with that old familiar choice between the lesser of two evils?

Now with another one of these big bogus showdowns looming down on us, I can already pick up the stench of another bummer. I understand, along with a lot of other people, that the big thing this year is Beating Nixon. But that was also the big thing, as I recall, twelve years ago in 1960 – and as far as I can tell, we’ve gone from bad to worse to rotten since then, and the outlook is for more of the same.

Is Hoarding Cash The Prudent Move As Market Awaits Election Results?

Could cash stuffed into a Mason jar and buried in the back yard be the best investment hedge against the unpredictable future that this year’s presidential election will bring?

While no one actually encourages burying money, some financial watchers have suggested that hoarding cash – even as much as 50 percent of your portfolio – would be a smart way to limit risk in case the market gets extraordinarily jittery once we know who the next president will be.

But not everyone agrees that strategy is the right call – at least not for all.

“Cash is an old standby that certainly works,” says Rich Conley, Executive Vice President and Head of Sales for Sawtooth Solutions (www.sawtootham.com), a company that provides technology platforms that help financial advisors manage their clients’ accounts.

“But raising cash could create unintended tax consequences so you will want to take that into consideration as well.”

Conley says “hoarding” is something of a loaded word. It suggests that people are letting emotion creep into what should be a disciplined approach to investing and building wealth over time.

“Hoarding may also be counterproductive,” he says. “It may be a good idea for some investors, but not for others. The primary reason someone would want to hold a higher than normal amount of cash is to reduce investment risks.”

Conley says he just recently had a lengthy discussion on the subject and its implications with Barry Mendelson, CEO of Capital Market Consultants in Milwaukee.

“To reduce risks, you need to have a good idea of how much risk you are taking right now and how much of it you want to reduce,” Conley says. “That answer won’t be the same for everyone.”

• Market reaction isn’t inevitable. Just because doomsayers think election results could negatively jolt the market, that doesn’t mean it will happen. “If you think back to the last election, it produced a result that was very counter intuitive, with the market rallying very strongly following the results,” Conley says. “I don’t know many people who would have guessed that, except those who believed the status quo would be rewarded.” • Other options exist besides hoarding. There are plenty of alternative approaches to limiting risk. But in choosing one, each investor should decide for themselves what they are trying to protect against and what approach best matches their forecasted outcome and concerns. • Issues to watch. The political issues of particular concern to investors are the same issues impacting the general electorate, such as national security, public safety and the economy. Depending on who wins, the approach to those issues could be quite different, as would be the effect on investors.

“No matter what, we will have a new administration and things change,” Conley says. “There is risk in change and likely it will be quarters before there is clarity on the nature of that change.”

About Rich Conley

Rich Conley is Executive Vice President and Head of Sales of Sawtooth Solutions, (www.sawtootham.com) a company that provides wealth management services and technology platforms that help advisors manage their clients’ total relationships.

The IRC 402(b) income plan

Income Deferred on Gains and Accumulations

Issue: How many people have enough savings for retirement now?

Today's statistic is that a person over age 50 who loses his job will have a 90% chance of not finding a job.

Please give consideration: to my talking about a pre-tax contribution, internationally registered and recognized, foreign retirement plan that is compliant internationally continuously

has simple one form reporting

is a tax free roll up investment account

is specifically recognized as deferred income on FOUR IRS reporting forms

At this point, many are thinking, ''Why have I never heard of this before?'' and my answer to them is ''You don't know that you don't know because you never read the information sheet on how to complete those FOUR IRS forms!''

At this point just take it that you read the IRS information sheets:

We will show you that investing pre-Tax with tax free roll up means that your retirement savings has two tax affected benefits immediately

1. increases yield continuously so that future after tax values later beat anyone's yield and
2. deferring large chunks of income pre-tax you can reach your retirement savings goal

The reason those two benefits are important is because:

Taxing your income later means that your net future value result is much higher, which is the result of tax affected yield increasing the speed to your retirement savings goal and This deferred income plan also permits an increased size of savings contribution to make retirement the best years of your life!

Control over your tax position is only what your investment account allows it to be.

Everyone has heard about a 401k, everybody knows about that, the 401k was never designed in 1974 to be the one retirement fund.

It was designed as a supplement to the old company final salary plan which has gone the way of the dodo bird.

The 401k ceiling on contribution size is too low.

It was never designed to be the one source of retirement income.

There is a ceiling on contribution size which means if you are behind in saving for retirement than you can never catch up!

US-based plans are not globally functional.

A 401k plan requires U.S. sourced employment income.

Do you work overseas? Foreign employment contributions to a U.S. 401k plan are not allowed.

By contrast,

The IRC 402(b) income plan is the one plan that delivers a truly international U.S. and Foreign employee solution to retirement savings without contribution size restrictions and with tax and reporting compliance globally.

This deferred income plan is not new, it was launched by Internal Revenue Service Tax Code back in 1986, Yes 30 years ago, and is recognized internationally as a compliant and excluded financial account. That is what we provide

OK, So, everyone wants to ask us: what are the benefits your plan delivers to me immediately?

Tax affected yield that beats anyone's yield

what are my benefits along the way?

Simple tax and reporting compliance continuously

what are my benefits down the road?

Reduces the cost of tax by 50% and more

and what are my benefits upon disbursement?

You control your rate of withdrawal at your own retirement life style rate-Go-Go, Slow-Go and No-Go

Get the IRC 402(b) income plan Free White Paper

Q: Is now a good time to be buying gold share or bullion? You have still not issued a buy signal. When do you think you will be able to give a buy signal on the Fixed System?

A: January or February 2017 is the target now.

Q: Are you expectation the gold market to go down from here?

A: I am expecting 2 weeks up and 3 months down from here.

Q: Do you have a wave count you can share?

A: Yes, but please remember that the wave count is not predictive. It is confirming. So if the price action, 2 weeks up and 3 months down, goes as expected then, at the low in January or February, we will have the end of wave 2 from the gold price low of 1045. If so then we should expect a strong wave 3 to the upside thereafter. That is not a prediction. When the time is right, the market will signal us. If we get the 2 weeks up and 3 months down, that will be a strong indication that the suggested wave count is correct.

Q: How are political events impacting your analysis?

A: It appears that Trump will win in a landslide. I am not expecting it to be close. A Trump landside would be an indication that the general public is distrustful of government. That is a plus for the price of gold.

The Fixed System

All securities and cash stay with client’s broker or bank. We provide buy and sell orders to client. Client transmits the orders to his bank or broker for execution.

Q: What is the Fixed System?

A: The Fixed System is the application of economic law in a manner consistent with the scientific method to profit from price changes.

Q: What do you mean by scientific method?

A: Using observation to establish facts and then logic to reach useful conclusions that follow from the factually correct premises.

Q: What do you mean by economic law?

A: A useful description of human action related to economic activity. See Human Action by Ludwig von Mises and Man, Economy, and State by Murray Rothbard.

Q: Where do I begin if I want information about how to apply economic law?

A: Start with The Art of Speculation during Civil War — Sun Tzu Meets Jesse Livermore.

Q: These three books amount to over 2,000 pages and the material is sometimes difficult. Do I need to understand all of it before I can use the Fixed System?

A: No, but you'll get better results if you do. If you want to base your speculation on facts and not falsehoods, on valid conclusions and not fallacious reasoning, then read and study these three books.

Q: Which of the three should I read first?

A: Start with the Q&A in Sun Tzu Meets Jesse Livermore (Appendix A). Then read the entire book, then Mises, and then Rothbard.

Q: I understand that all value is subjective and that in a market economy, the current price will be bid up to the expectation of future price less cost of carry. The same process occurs in reverse when market participants expect the future price to be lower. You use four criteria to measure this and to call the low in the gold market: 1. a break to the downside in the general securities market, 2. extremely negative sentiment indicators, 3. ending wave pattern, and 4. specialist short covering. Is all of this part of the Fixed System?

A: Yes. That all value is subjective is a fundamental law of economics. The system is fixed because economic law and facts are fixed. You can ignore the facts and law but you will suffer the results of ignorance never the less. Economic law is just a binding as the law of gravity.

We invite you to request a Arthur Fixed Consultation at your convenience.

by Arthur Fixed

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