Honolulu, Hawaii, July 3rd 2009AD

Blog entries may be a bit sparse for the next few weeks. We are currently in Hawaii visiting some relatives and taking a much needed holiday.

View from our deck

Just a few economic observations here and collecting data from locals:

Walking around downtown Waikiki, it is not evident that there is any economic problem at all…hotels and shops and the beach look quite busy to my eyes. Lots of asian tourists here, mostly Japanese. Nothing abnormal there.

Under the surface though, after talking to some of the locals…its a different story. A friend of mine who owns a business here says that in september business dropped off substantially…roughly 20% to 30%…he likened it to the drop off in business right after 9/11. He also says he it hasnt come back, and is concerned that it isnt going to for a while.

Interesting times we live in no doubt, and although many entries I make may sound  irritated and ticked off…keep in mind that I am actually a very optimistic person (and no, this isnt just because I am in Hawaii).

Point being, even though we see lots of turmoil all around us, and there is no doubt the US and western nations are going to go through a period of adjustment in lifestyle…there were alot of millionaires created during the great depression…the question of course is how did they do that?

Its almost easy to make money when there is plenty of it and people are spending freely on their house equity atm cards. What about when they dont though? What about when they start saving, as current data is showing Americans are starting to do?

Moving forward, myself and my colleagues are all of the mind that being on the supply side of the equation is where to be. Basic services that people will not cut from their budgets because they are needs not wants. As well as raw materials..because if you think globally you will realize there is a massive demand out there for raw materials that is only growing, not diminishing.

Products of the earth basically…metals…especially precious metals….agriculture…energy…

You can listen to a recent roundtable tele-conference with several men of outstanding perspective…AFE Director Philip Judge…AFE Director Simon Heapes…AFE Broker Duncan Cameron…and Palau Pacific Exploration Director Justin Pettett

http://www.anglofareast.com/anglo_player_content.html

I had one of our clients ask me recently…how do you position yourself for revenue in this kind of market? My answer was….getting on the supply side of the commodity. Owning the mining company…or the oil company…or the gold and silver company…or the farming concern…or being involved in its distribution, in AFE’s situation the service side of acquiring gold or silver, protecting it, redeeming it.

During great change there is also incredible opportunity….’wealth isnt just destroyed…it often just changes hands…’

If you pay attention…there are definitely ways to win in this environment.

All the best my friend, until next time,

Alex and Misty

Alex Stanczyk

This entry was posted on Friday, July 3rd, 2009 at 12:15 pm and is filed under Archived. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.