Best Investments 2013: Beat Bernanke by Embracing the Free Market

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For the last four years, ordinary Americans have struggled to rebuild their wealth in the wake of the Great Financial Crisis.

Last week, the Federal Reserve Bank of St. Louis reported that the average U.S. household has recovered only 45% of its wealth lost during the recession.

Of course, the Federal Reserve won't acknowledge that its Chairman, Ben Bernanke, has been a principle driver in the underperformance of the middle class' return to financial normalcy. Bernanke has removed incentives for anyone to keep their dollars in a savings account by knocking interest rates to near-record lows.

Meanwhile, nearly 50% of Americans do not own any stocks or bonds. Given recent memories of their wealth evaporating, it's been difficult to instill much confidence for those who lost so much.

Low rates and lost confidence in the markets have left more Americans vulnerable to inflation, accelerating costs of staples, and uncertainty about their financial future.

But there is good news.

As the U.S. policy continues to exhibit how government intervention in the financial markets favors the rich and leaves the middle class out in the cold, there still are ways that the average investor can make money.  

And it all starts with one simple piece of economic advice.

You need to take charge of what's available in the markets and put your money to work with investments that offer a healthier dose of confidence than Ben Bernanke's economic alchemy ever could.

Let me explain…

Embracing the Free (Energy) Market

Right now, keeping money in a savings account is going to cost you due to inflation. And putting much faith in the U.S. government's rates will not do much to instill much confidence.

But by investing in companies engaged in the procurement and distribution of valuable commodities will provide a steady return on your investment in any economic environment.

Embracing these companies that have the capacity to expand globally and pay strong dividends can help beat back Bernanke's war on savings accounts.

That's because publicly owned American companies, despite new regulations and government intrusion, find a way to perform around the rules and policies meant to hold them back. They perform through innovation and competition. They thrive off their ability to provide a need in a market.

Simply put, investing in companies that facilitate global trade are the best investments to defend against government's reckless fiscal policies. Yes, the markets do go up and down, but investing for the long-term is an important strategy to help rebuild wealth in these tough times.

Of course, this sounds so simple.

But for a person like me who is fascinated by global trade, innovation, and problem solving, I tend to "geek out" by what's happening right now in this world.

And of course, the money that can be made…

Join the conversation. Click here to jump to comments…

  1. Emily Whitney | June 7, 2013

    MLP's and REIT's are rip-offs. Most of the "dividend" is return of capital. And no, you don't get that capital back when you sell your holding. I speak from experience.

  2. H. Craig Bradley | June 9, 2013

    INCOME EQUIVELENTS ?

    Then might one consider the purchase of a high yielding MLP or REIT as an alternative to a Immediate Annunity? Both require you to tie-up a fair amount of capital and both pay you a good return each year. At least REIT's and MLP's don't sock you with commissions and special fees at the time of purchase. Still, you need to keep a cash reserve just in case. That function costs money, as you say, on account of inflation. But consider this: all forms of insurance have their costs. Buying PUTS to hedge a stock costs about 3% of the holding's value. Again, portfolio insurance is a cost. No free lunches, except for U.S. BANKERS ( psst, their special).

  3. robert | June 10, 2013

    "That's because publicly owned American companies, despite new regulations and government intrusion, find a way to perform around the rules and policies meant to hold them back."
    "meant to hold them back", really?
    Every time I see a statement as stupid as that I am inclined to quit reading as the author is clearly being political and not analytic.

    • Adam | June 17, 2013

      Yes, Adam, "hold them back"… It is why job creation is at a snails pace. Job creation is being suffocated in the U.S. and stifled something terrible. Anyone with a brain who does not deny reality or promote the socialist sabotage propaganda rubbish already knows that. There is a reason the debt is the largest in world history..High taxes and too many regulations make people less likely to open businesses or for business to do well. That is common sense, unless, of course, one is a feeble minded, illogical fool.

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