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Investors Brace Yourselves, It's Time To Hold Cash - Doug Casey

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Editor's Note:Kitco News has officially launched Outlook 2019 - Rush To Safety - the definitive reference for precious metals investors for the new year. We chose this year's theme as financial markets face growing uncertainty. With volatility on the rise, how do you protect yourself? Click here daily to see updated content.

(Kitco News- Hello investors, it might be wise to build up your cash positions in 2019…

This according to famed investor Doug Casey, who is the featured expert for week two of "Invest Like The Experts."  

We have lined up some of the best-known names in the industry for the 2019 Outlook Expert Series, so don’t miss out! Be sure to check back every Friday on Kitco.

PART I: Hold Even More Cash In 2019 - RBC's Gero

PART II: Investors Brace Yourselves, It's Time To Hold Cash - Doug Casey

PART III: Invest The Warren Buffett Way In 2019 Says This Expert

PART IV: Stay Away From U.S. Markets, This Sector Will Boom In 2019 - Peter Schiff

PART V: Jim Rickards Says Cut Your Losses and Invest Here in 2019

Doug Casey

Expert: Doug Casey

Claim to Fame: Founder of Casey Research and International Man; two-time New York Times best-selling author.

If an average homeowner has disposable income, what percentage do you think they should invest in 2019?

"At this point – even though you know you will be losing at least 5% per year to real inflation by holding cash – I’d be building up a big cash position. Why? Because all the markets, except for the commodity markets, are overpriced and very risky at this point," he explained.

Where should someone invest in 2019? Which sectors are likely to boom in 2019? 

According to Casey, investors should be somewhat wary next year.

"What I’m most afraid of in 2019 is a credit collapse… that the government may not print up money fast enough to allow the over indebted world to service its past debts," he said.

That is why Casey says it is best to build up cash. How can investors do that?

"If you’re going to own cash, I’d own it in the form of treasury bills or treasury bill equivalents," he said.

"If things get nasty, you may find banks acting like those in Cyprus a few years ago. So-called ‘bail-ins’, taking your funds over the insured limits."

What are the first steps anyone should take before making any investment?

"Get out of debt," he said.

"Many people have high-interest rate debt; now is a good time to pay off debt unless it’s extremely low interest, and fixed-rate over the long term."

What is the biggest red flag for you when it comes to considering a new investment?

"Don’t just look at the potential upside. It’s more important to consider the risk," he said.

"Right now, the world is a very risky place."

Looking back, what was the best investment you made in 2018?

According to Casey, a private placement in Novo Resources "worked out well" for him as well as his investments in blockchain.

However, moving forward, he says he will look to accumulate, "commodity-related stocks, particularly gold and silver-related stocks, for their leverage."

Any final advice for investors?

"This is a time not to think about making lots of money, but about keeping what you have," Casey says.

Finally, commenting on the lower gold prices, Casey had four simple words for investors: "Its day will come."

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.