|Crash Proof: How to Profit From the Coming Economic Collapse (Lynn Sonberg Books)
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The economic tipping point for the United States is no longer theoretical. It is a reality today. The country has gone from the world's largest creditor to its greatest debtor; the value of the dollar is sinking; domestic manufacturing is winding down - and these trends don't seem to be slowing. Peter Schiff casts a sharp, clear-sighted eye on these factors and explains what the possible effects may be and how investors can protect themselves. For more than a decade, Schiff has not only observed the U.S. economy, but also helped his clients reposition their portfolios to reflect his outlook. What he sees is a nation facing an economic storm brought on by growing federal, personal, and corporate debt, too-little savings, a declining dollar, and lack of domestic manufacturing.
Crash-Proof is an informed and informative warning of a looming period marked by sizeable tax hikes, loss of retirement benefits, double digit inflation, even - as happened recently in Argentina - the possible collapse of the middle class. However, Schiff does have a survival plan that can provide the protection that readers will need in the coming years.
- Responsible and Accurate
Peter Schiff has produced a truly remarkable book that serves as a roadmap to intelligent and efficient investing.
As some misinformed pundits liken Peter to a professor of "doom & gloom," that representation couldn't be further from the truth. Most of these type books do nothing more than bore you for hours, advocating for the reader to sell everything, buy gold, and build a bunker with 1 yr supply of canned soup. Unfortunately they are unrealistic; especially since I (and a great many others) would much rather die a quick death, than to be without a Blackberry for more than an hour.
Instead, Crash Proof is a fair and accurate depiction of our most recent financial era. Peter highlights the failed government policies and culture of rampant careless spending that has brought us to the economy we have today. His insights on investing to survive the economic downturn are very well thought out and responsible. The concern for the US economy is very real and frightening, as he articulates throughout. But as his philosophy is commonly perceived as being bearish, I would have to disagree with that assessment. He is an intelligent investor who has a thorough understanding of history and economics, and his recommendations reflect that comprehension of our world economy, and the direction it is heading.
As an investment professional myself, I recommend you do 2 things along with reading Crash Proof. 1) Visit [...] and browse all the priceless information on the site. For anyone with a speck of interest in economics and investing, there are few (if any) websites that can compare. I visit daily. 2) On YouTube, search: "Mortgage Bankers Speech." This will bring you to clips of the 2006 Mortgage Bankers Conference where Peter was a guest speaker. As you will see, he was warning about subprime before 99% of financial professionals even knew what it was.
- Sounded the alarm - We should have listened
Crashproof is divided into two parts. The first part provides a solid background and history of the current economic mess the United States and the rest of the developed world is facing. I found this to be very informative and helpful even if somewhat depressing.
The book was prescient in that it was written prior to the breakdown of the American financial system in September 2008 and a lot of his predictions have come true. It's interesting to note that some of the worst possibilities he mentioned have come to pass in the ensuing months since the book was written.
The second half of the book deals with how you can best position yourself financially to weather the economic storm and maybe even come out ahead when it is finally over with. His conclusions...get out of stocks, especially US stocks, diversify into foreign markets and currencies; invest in Gold and stay liquid. I endorse all his recommendations as, in my humble opinion, I feel this is the way to invest in the near term.
If you are interested in learning what caused the economic mess we currently find ourselves in I recommend reading Crashproof as the first part of a multi-part reading series. This book is complemented well by Meltdown: A Free-Market Look at Why the Stock Market Collapsed, the Economy Tanked, and Government Bailouts Will Make Things Worse, The Ultimate Depression Survival Guide: Protect Your Savings, Boost Your Income, and Grow Wealthy Even in the Worst of Times and The Road to Serfdom: Fiftieth Anniversary Edition.
We are entering perilous economic times that will be challenging to everyone. To be forewarned is to be forearmed. Crashproof will help you to position yourself financially for the next few years....more info
- Worried about Inflation?
You should. Since you should be, you should also read this book. Peter is the only pundit who called this real estate crisis, and he is the only investment advisor who adheres to the principles of Austrian Economics.
If you wish to protect your wealth from severe inflation (that has already taken place; it is just not realized in the prices yet), read this book while you still have time....more info
- Gloomy forecaster offers a bright economic alterative
Contrarian investor Peter D. Schiff isn't just a bear. He's a sky-is-falling, bury-the-Krugerrands-in-the-backyard bear. Writing with John Downes, Schiff argues that the U.S. economy is going to hell, and that clueless consumers, opportunistic Wall Streeters and pandering politicians are carrying the handbasket. Schiff's screeching tone is a bit grating - until you realize that many of his predictions have proven accurate. That doesn't mean you shouldn't take him with a grain of salt, but this book was published in 2007, and in mid-2008, Schiff's forecasts of a weakening dollar, rising gold prices, a bursting real-estate bubble and strong foreign stock markets were spot-on. His pessimistic polemic could use more practical advice and less macroeconomic analysis, but still getAbstract recommends it to those who seek an alternative viewpoint....more info
- It's 2009 and this book has been right so far...
Reading this book now (January 2009) is like watching a horror movie and seeing yourself in it about to be attacked.
Schiff does a great job explaining the causes for our current situation, and laying out why there WILL be a crash and a complete devaluation of the dollar within the next few years. The government may be able to slow the process down, but his big prediction is that a recession will eventually combine with hyperinflation to cause the economy to collapse. The inflation may come from foreign governments dumping $ USD in favor of other reserve currencies, or from the US government simply printing out more paper. The big variable here is, how much will foreign governments be compelled to pull out of the US and invest their money elsewhere, and when do they lose their confidence in the value of the USD? His advice on saving SHOULD be common sense, but the sad truth is that it isn't anymore.
While parts of the book seem doom & gloomy, and the later parts have a bit of shameless self-promotion in them (he runs a brokerage firm that advises clients according to his perspective,) the advice and knowledge he includes in the book are worth their weight in gold.
Take any economists' predictions with a grain of salt, but this guy has been pretty darn accurate so far. Read it NOW; it may change your habits for the better....more info
- Sound Advice
I thought the book was well written and very thoughtful, not full of hype. The author builds a strong and logical foundation for his belief in a coming economic collapse for the United States. He helps the average person understand how our nation got into this condition and provides some practical suggestions on how to prepare for the trouble ahead. Much food for thought....more info
- It is here now, what more addtional evidence do you possibly need?
The depression is here now, what more additional evidence do people possibly need to be convinced that we are in a depression?
-We have had 600,000+ jobs lost for past six to seven months (that's an official figure, the real unemployment rate somewhere between 16-20%)
-A debt level that will soon outgrow annual GDP (around 11-12 trillion outstanding debt which is really going to be around 53-60 trillion within coming decades)
-A manufacturing base that have largely disappeared and disappearing fast
-personal and corporate bankruptcies at historic levels
-The Fed printing trillions of dollars within several months and likely to make additional trillions
-overstretched military budget and bases all around the world
Why is it so hard to see that we are spending too much, borrowing too much, and printing too much money? Why is it so hard to see that the current economic model of boom and bust cycles is not sustainable? Why is it so hard to see that Federal Reserve keeping the interest rate too low making all these loans that cannot be repaid and raising the interest rate to bust asset bubbles is the main reason why we have depression and always had one because of it?
Would it take gold reaching $2000 and beyond to wake people up? Would it take martial laws to quell tax revolts and civil unrest? It looks that way.
I would start buying gold little by little when it is around 700-900 range before it has another spike in price. Also I advise people to save as much money as possible before it gets really difficult.
To get a further knowledge on the nature of Federal Reserve you should look into The Creature from Jekyll Island: A Second Look at the Federal Reserve...more info
- Crash Proof
I read this book from cover to cover, and found it to be very helpful and easy to understand. I contacted Peter's organization, Euro Pacific, and am considering having them help me with some investments....more info
- Reluctantly impressed...
I have seen Peter Schiff for a couple of years now on CNBC, FOX, Kudlow etc. Frankly he does not come off all that well on TV, he scoffs and is somewhat sneery, voluble and impatient. Other panelists often tend to be dismissive and mocking towards him. I have to say I took a disliking to him and wondered why they bothered to include him. The fact that his father seems to be a crackpot tax protester who is in federal prison until 2016 doesn't lend much confidence either. But the last year is making the so-called perma-bull cranks look prescient. I decided I needed to read his book so I got it from the library and just finished it.
He is much more impressive in print than on TV. If I had read it a year ago I would have glossed over some of his concerns, like Fannie Mae and Freddie Mac possibly failing. But to read that now just might put a bolt into you. The majority of his points make very good sense to me. He lays out the reasons why the dollar and economy are headed for disaster and although I realize that case has been made for years I really have nothing to refute those points with. Probably the most convincing part of the book for me are his prescriptions for avoiding the coming mess by getting into gold, foreign investments and currency. The advice seems pretty sensible and at the least no more risky than being in the US markets. I think he makes a plausible case why that is almost a can't lose scenario. Of course gold is off it's recent high by about $200 an ounce as of today. Is it a buying opportunity or a chance to get burned? The usual dilemma.
I have always been optimistic about the American people and economy, we are probably still the most dynamic society on earth. I took to heart the advice that no one ever got rich betting against the US. Frankly I am a sensible but conventional wisdom kind of guy. But we have now seen decades of irresponsibility in government, corporate and household accounting and lately I am feeling like I have been misinformed, lied to and BS'd by every so called expert in the media and corporate world, not to mention the government. Having said that, what I would like to see is someone of impeccable credentials review and address Mr. Schiff's points and possibly offer a rebuttal. When I google Schiff or Euro Pacific Capital I find it hard to find any performance statistics or relevant critiques of him. But I will definitely state that his book is worth reading and giving serious thought to. If anyone can point to a reasonable discussion or info associated with him or his company I would appreciate a message to that effect. ...more info
- Prepare - The Economic House of Cards Has Started To Collapse!
1 Chronicles 12:32 "of the sons of Issachar who had understanding of the times, to know what Israel ought to do..."
Ecclesiastes 1:9 That which has been is that which will be,And that which has been done is that which will be done.So there is nothing new under the sun.
One thing is certain, and that is Peter Schiff understands our times and the politicians we have elected and will continue to elect to our national government. The economic collapse of the US is, in my opinion, irreversible and unstoppable. Our national debt is $10 TRILLION dollars and the government has promised to pay another $50 TRILLION dollars in Social Security and Medicare payments over the next 20 years. The Fiscal Year 2009 budget deficit is currently projected to reach $1.5 TRILLION dollars. The federal government cannot tax us to cover these promises and the US population will not accept the fact that the Social Security/Medicare Ponzi Scheme is on the verge of collapse. So, the electorate will not allow the government to reduce Social Security or Medicare benefits (the Concord Coalition's website at http://www.concordcoalition.org/ will corroborate the extent of the danger we face as a nation). So what will the government do? It will inflate the currency to oblivion, ala Zimbabwe and Weimar Germany. Just read The Great Disorder: Politics, Economics, and Society in the German Inflation, 1914-1924 by Gerald D. Feldman to get a foretaste of what I believe is in store for us in the not-too-distant future.
Now to Peter Schiff's book. He predicted the collapse of real estate and stock prices two years before the bubbles burst, and I believe he is right about the future of the US economy he describes in this book. If that is all you get out of this book, he has done you a great service. All investments have a risk of loss, whether those investments are here in the US or in foreign countries. But, unless you want to be like Gerald O'Hara in Gone With the Wind, sitting at your desk holding worthless government bonds and smiling because you are so rich, you must start preparing. Peter Schiff explains inflation, what it is, how it is caused, and why all governments lie about it. And, he provides a strategy for saving your wealth by leaving an economy on the brink of collapse.
Get this book, read it and then read it again. Then start thinking about how you can act to save your wealth while there is still time. This book will lay a great foundation for you to begin thinking about an alternative investment strategy that will be necessary in the years ahead. Can Peter Schiff infallibly predict the future? Obviously not. But, he gives you the information you need to understand what is happening in our country so YOU can make informed decisions about the future.
- don't lose money with Peter Schiff like I did
So I read Crash Proof and listened to Schiff and invested a sizable amount of money with the guy. My account as of December 2008 is 1/3 the value that I started with. If you listen to his radio show he says that "this is temporary, you still have the dividends". What is the dividend of a bankrupt company? I have a couple of them in my "diversified, conservative account". Australian mining companies heavily in debt and crashing commodities produced this result. All the other gems that they invested me in are down by 1/2 or so. My best performers are around only 25% losses. As the world economy goes into a depression what happens to dividends? They go to zero as companies need the cash. So there goes the income stream he preached about.
Schiff was correct about the US real estate and US stock bubbles. But he completely missed the boat on world real estate & stock bubbles, deflation and a commodity bust. And that is where he invested his clients money. I would have done better in the S&P than investing in Europac.
As you read the reviews of this book, ask yourself is the person writing it a Europac client or just someone nodding with him on TV as he talks? I know 3 other people that around 50% since investing with him.
Buyer beware - the guy got it wrong in the investing world.
- Extremely informative and important
Peter Schiff is one of a few people (including Ron Paul) who have been warning us of the dire consequences of the faulty and fraudulent economic policies that our federal government has been pursuing for many years and which we are now starting to suffer from in an increasingly painful way. He also has suggestions for dealing with the crash which we are at the leading edge of at this time. If you think the government can solve a problem that was created by inflation and easy credit with more inflation and easy credit this could be a real eye-opener. ...more info
- He was right.
The current news explains it all. The man was right. This book reads almost like a blueprint for news that was to come months later.
I've used Peter's strategies to make money shorting financials and buying metals at various periods during the last few weeks, and I'm continuing to follow strategies he has outlined.
If you pass on this book, don't say you weren't warned. It's one of the most important books for an American family to have in its library....more info
Two years ago, everyone thought this guy had lost his marbles. Well, just read the book, and see that much of what he predicted is coming true. As a person in the financail industry, I personally admire Peter Schiff's boldness to come against the biased media news that we recieve so recurringly, and tell the truth that we all need to hear. The best part about the book is that he gives us a plan of action for our financial advise. Please read this book....more info
- From Spain
There is no specipic recomendations, to much generalisations.
Is a paid ( by ourselves) propaganda of his financial letter.
Sorry to be frank, but,to me,the book is a grate deception. ...more info
- Peter gets it.
Peter has been right for years even in the face of overt ridicule. This book is not just for the average American, it's a global reference.
He backs up what he teaches with fact and doesn't act like another talking head....more info
- Too soon to tell
Peter Schiff deserves (and gets) credit for predicting an economic mess caused by the US living well beyond its means on baseless credit. Whether or not his other predictions come true in the longer term - i.e. the complete collapse of the US economy and value of the dollar relative to other currencies, huge dollar inflation, a big rise of the value of gold and ascendency of China and other manufacturing countries - remains to be seen. There is certainly every reason to be scared for America's economic future. But, as other have noted here, investors that have followed Schiff's advice have so far (mid-Dec 2008) done even worse than those who just kept their money in the dismal US stock market.
It appears that Schiff himself has been taken aback by the global nature of this mess. His book's predictions and investment advice were specifically for an American failure. While it may have been American in origin, it is currently universal in effect. It is still too early to see if the US will actually suffer worse than the rest of the world in the long-term. China's urban unemployment is very high and growing. Hundreds of thousands of its factories have already closed down and there is a real fear and risk of massive civil unrest. These are not the signs of country that is about to just switch its manufacturing efforts from export to meet its own people's more basic needs. It may be that we'll find China was still a few years short of the critical mass necessary for self-sustenance on the scale that Schiff predicted. Only time will tell, but it doesn't look good. Japan is also very dependent upon exports that have largely dried-up.
One characteristic in this book is Schiffs condescending treatment of Asians as fools while, at the same time, praising their virtues of hard work and thrift. His repeated parables (e.g. 5 active Asians feeding one indolent American who pays them in worthless paper IOUs, year after year) imply that they are just too ignorant to see what is so obvious to him. He must think them stupid indeed that they still continue to buy US bonds and are just as desperate as American politicians to increase US consumerism to its former levels. Either that or he feels that the rather basic information contained in his book is not as available to Asian central banks and economists as it is to him.
Something else that is relevant to this subject but completely ignored by Schiff is the world's declining maximum oil supply. Like many economists he seems to feel its extraction is just a matter of supply and demand. Oil price has fallen greatly in recent months but even in this worldwide recession, oil consumption has barely dropped (from its highest of 88 BPD to 86 million BPD now). If and when the world's economies turn around (and maybe before then), they will come to a screeching halt when the fundamental limitations of oil supply become apparent. That certainly won't be a US-only phenomenon and its irreversible effects may well dwarf the fiscal woes predicted in the book.
- Crash Proof by Peter Schiff
Great Book! Peter Schiff has proven to be very knowledgeable, helpful to the regular person, and insightful of both historic and future moves of the market....more info
- Beware of Donkey's Ears.
This book made a great read back in 2007, and naturally, became famous in an obvious ominous trend culminating the end of Bush catastrophic presidency.
However, it is so profoundly geared to an American reader, who is largely unaware of the economic situations in Europe, China, India, Brazil, Russia and other "greener grass" countries.
Dwarfed by recent American economic problems, the issues of aforementioned economies are not highlighted today as they have been before. But speaking of debt, Europe is in a dangerous position with its socialist system rewarding economic passivity; China is beyond any serious discussion as it will one day implode as Soviet Union, since no totalitarian regime can be fundamentally economically sound; India is a caste society sinking deeper in religious fundamentalism; perhaps Brazil is the best of pack, but it is still a small economy. And Russia is simply not a market system yet. But in the spur of the moment these problems with these societies/economies are rarely mentioned recently as Americans are so preoccupied with their own country's situation, looking for a "new" solution.
Thus I think the book appeals to scared Americans with its dubious call for the above mentioned regimes and gold as safe heavens. One should note that gold actually descended from its height in March 2008, and even at the stock market bottom of March 5 2009 it did not reach its previous year level.
Could it be that this book is just another log thrown into the gold bubble? Why should gold bubble be different from our housing, stock, oil bubble?
And how could investing in Europe with its insolvent debt be better? Needless to say, other countries mentioned are exotic regimes, with most Americans never been there, not lived and having little understanding how much more dangerous and unstable all those economies are, ruled by tyrants or corrupt politicians, regimes with no transparency, with information about anything controlled by local Ministries of Truth.
Using past as a guidance to the future, the safest investment is that relied on law and order, and it could very well be that American corporate bonds or real estate or stocks are the best at this time. As markets change, capital rotates, and there is no safe heaven in anything - one can look at what gold did during Soviets invasion in Afghanistan, and those who bough at $1800 are already waiting almost thirty years to break even.
The secret that the author doesn't reveal is that NOTHING is crash-proof in the first place, and secondly, to benefit from the crash, it has to happen - something that might not come in our lifetimes. And thus investment strategy targeted at benefiting from the crash might not pay off as the crash itself might not come.
Instead, we may have another rebound in America in front of us. In this case, those who got gold may end up losers in the foreseeable future. Severely depressed real estate may attract capital away from gold at these levels, as gold may be considered overbought while real estate oversold. The same goes for American stocks. Gold holders may be left with donkey's ears, Midas touch is a severe blessing. Gold is still a commodity and can drop wildly, as anything else, when no one is expecting Golden Black Swan to arrive.
"Investing is the most difficult thing possible" - Jesse Livermore.
And another universal one:
BUY LOW SELL HIGH.
- No profots for lost souls
The Bible says no man will profit that loses his soul - I'd add that no man will profit who has no money, and the Lord will not allow those who are wicked to reap their rewards. Everywhere I look someone is mocking and despising Jesus, and then they wonder why they have no money in their 401 K. This doesn't mean Jesus is attacking you - he is just defending himself against YOUR attacks. It is you who have rejected Him, knelt before satan and placed his dingus in your mouth.
I say to you to spit out Satan's dingus and replace it with a Eucharistic host and sing the praises of He who conquers sin . Also, you will not prosper until the false theory of evolution and all those who teach it to our children are stopped, this includes the PBS show "Sid the Science Kid" which teaches children to question religion. Charles Darwin never did any research, and science is supposed to be based on observation. jesus is a better scientist than darwin since he observed the creation of the world when he was a little boy with his dad (God), and darwin wasn't even born yet then. Jesus is a better scientist than Darwin because he based his findings on observation.
We as a people will recover from the financial crisis when we lose our appetite for what's in the devil's pants, stop being whores for evil and return to the teachings of the great virgin jesus. Until then, do not watch "Sid the Science Kid" and stop thinking that humans were created by evolution, evolution is not a person and cannot create anything so that's stupid. ...more info
- We're Busted!
Peter Schiff is to "Crash Proof" as Joel Rosenberg is to Epicenter: Why the Current Rumblings in the Middle East Will Change Your Future. Both are clear, concise and high accurate.
Others have eloquently set forth the crux of the author's book. Crash Proof was one of the stellar books of the many books I read in 2008--and the heavy highlighting of the book and my frequent use of it, proves its worth. Like many others, I am not an economic whiz, I quickly back-pedaled out of college economics once we got past supply and demand. That I understood, but I was sinking fast. Reading the book affirmed that things in my country were not right. Peter's book not only makes sense and is right on, but having been published in 2007 before things really broke loose in 2008 makes it even more valuable.
But did we just accept the author's thoughts on face value? Nope. We contacted the financial adviser of a fortune 500 company and the manager of a large financial institution. We had two questions: (1) Had they seen an M3 report that tracks the increase and decrease in our government's money supply? and (2) Did they agree with a negative assessment of our economic crisis? The answers were exactly those of Peter Schiff--No, they hadn't seen an M3 report since 2006 (p. 81) and Yes, they agreed wholeheartedly that our debt problem had been coming for years and that government and personal debt would bury us. It was just a matter of time.
While investment entities clamored over whether to buy, sell or hold, Schiff said to avoid the US market. When they haggled over whether to tell their clients to "review their portfolios for the long term," (and, thus, save their commissions), Schiff quietly screamed to flock to the safety of stable foreign markets. Just as Europe was the world leader before America took the world stage, the next economic power is in Asia and the quickly emerging countries.
Peter Schiff not only clearly establishes economics and the reason for his worldview, but provides many practical recommendations. Will I, or can I, do every thing he suggests? No, but he provides a variety of selections that fit my needs. Does Schiff promote his company and his book? In the words of Sarah Palin, "You betcha!" However, he's pretty evenhanded: On page 195 he suggests a list of five questions to ask a potential foreign investment broker. There aren't a lot of foreign brokers, but I do see their ads on TV from time to time. And he's right about the service that Euro Pacific provides, They're handling our meager investment portfolios and treat us with the same respect and courtesy afforded the "big guys." I am very satisfied with the performance of my foreign investments, and I don't fret about them. I don't always agree with my rep regarding the performance of a particular company, but he sets forth his reasoning. Ultimately, it's my call.
The one thing I've decided I don't like about the book is its title. "Crash Proof" sounds like a come-on and misses Peter Schiff's passion, compassion and purpose: "My goal here is not simply to provide an investment survival guide, but to expose and illuminate the grave economic weaknesses that make survival the issue. A proper understanding of the true state of the American economy is vital to investors and noninvestors alike." (p. xv)
PS - Peter Schiff is a master of analogies. Not only do they keep his book light and readable, but they clarify complicated economic principles. (Too bad he wasn't my economics professor!) One of my favorites: "Despite all this negativity surrounding the U.S. dollar, the folks managing our economy stand like miners around a comatose canary, wondering what's bothering it and concluding maybe it's taking a nap." (p. 64) Love it! So if you see me wearing a sweatshirt that says, "The canary's NOT napping," and the economy is still in a mess, you'll understand. :)
- Excellent assessment of where we stand
Apart from being accessibly written, the economic logic in this book unfolds so seamlessly that the path to total ruin seems unavoidable. Decades of decadence backed by nothing more than IOUs, the destruction of the national cash reserves, and an economy that's poorly placed to turn itself around, all conspire to make this book's advice indispensable if you intend to protect your assets and survive the coming depression.
For all the naysayers out there who think that Schiff's doom theory is unfounded, interestingly enough most of his work was written well before the current crisis. The subprime disaster has had a devastating effect on employment and 401Ks - just imagine what will happen when the credit card crunch arrives with hyper-inflation and nobody outside the US will keep lending us any money. It's going to hit the fan in a spectacular way, and this has a fundamental impact on your personal assets....more info
- Crash Proof? Not Quite
There are things to both pan and praise in this book. On the pan side are the self-contradictory or perplexing statements sprinkled throughout the book. One page 153, Schiff states that "rising stock values are not savings..stock appreciation can be accessed only if the owners borrows against it or sells it". What kind of nonsense is this? No asset can be "accessed" unless you borrow against it or sell it other than cash! (And cash is only valuable because you can use it to buy assets and products.) So, not only is the claim ridiculous but of course he later contradicts himself when he claims that you should purchase equities (preferably through his firm).
The reason I entitled my review "Crash Proof?" is that as I write this, commodities and foreign stocks which he recommends over US stocks, have plunged far more drastically over the past several months than even US stocks. His premise that one should shun US equities in favor of foreign ones may or may not be a long term winner, but they certainly are not "crash proof".
My final criticism is that every one of his charts (and there are many) are taken from David Tice's Prudent Bear site. I hope Mr. Tice is getting royalties as he obviously has done the heavy lifting here. I can't recall reading a book where every chart or graph was lifted from a single source. Certainly serious scholarship is not to be found here.
On the plus side, the author makes a compelling case that foreign equities should be a hefty component of an investment portfolio. Even if one is unwilling to accept his argument that all American assets are doomed (which I am unwilling to do), every serious investor needs substantial exposure to foreign stocks, real estate and alternative investments in their portfolio. Mr. Schiff dismisses mutual funds for several reasons some legitimate, some not. ETF exposure deals adequately with most of his objections and of course there is no proof provided that Euro-Pacific's stock picks have outperformed any particular foreign index. ...more info
- Proceed with caution!
As I write this in the first few days of 2009, it has become obvious that we are in for a long, nasty recession. In fact, more and more people are predicting Great Depression 2.0.
In his book "Crash Proof," Peter Schiff presents many interesing ideas about what is to come and the book itself is certainly an interesting read.
However, there are many ways that this situation could play out and the book presents only one of them.
In fact, at this point in time (nearly two years after the book was released) the author's preferred investment vehicles are doing very poorly. Also, the economic situation has become more global than Mr. Schiff originally predicted, and China (on which the author is very bullish) has been hit very hard.
Will Mr. Schiff's predictions prove correct in the long run? Only time will tell, but there are currently many other differing predictions that are equally viable.
My advice would be to read the book, but do your homework on the bigger picture before making an investment decision you may later regret....more info
- Crash Proof your portfolio
Crash Proof is a very insightful look into inflation and how the prospect of inflation will cause further havoc within the United States economy. It further shows how the government has eliminated key components of rising prices in reporting core inflation and GDP to keep calm within the financial markets. This practice has endured ever since the US went off of the gold standard and coupled with overextended consumer debt and government debt, hyper inflation is all but guaranteed....more info
- some important decisions
this book gives the reader the chance to see why it is important to really pay attention to how the USA has been doing business for over 10 years and what should be done to protect yourself in the event his ideas do become reality. for those who have a large ammount of cash, this book gives you some very good ideas as to what to do and why. he does attempt to solicit you to do business with his company, but why should'nt he? it is what his company does and he has been in business for awhile! I really recommend this book, even if you choose to make other moves with your money....more info
This book spends pages and pages talking about stuff I have heard many times: the dollar is falling, we do not save enough, we have too much debt, the US Government is not helping the economy but hurting it, we need sound money, you should buy gold, etc. At the same time, in a few places, the author recommends, sometimes subtly, what is apparently a brokerage firm in which he has an interest - Euro Pacific Capital. Except for the latter recommendation and the one to buy gold, there are few other specific recommendations worth talking about. The book can be summarized as follows: The US economy is failing and will probably not soon recover, so buy gold and use the Euro Pacific Capital brokerage to buy some good foreign stocks....more info