Investing in a Risky Market

" Hello everyone time for the diamond district my next guest admit a lot of bad. It's come from Wall Street over the last year and people are justified in being afraid. To invest their hard earned money for why they don't trust the company's Wall Street for the government. But my guess still firmly believe that risk is good. Joining me for San Francisco in the diamond district today to share his tips on how to invest is sustainable well author Axel Merck. Axl thank you very much for joining me I see your new book -- we have -- up I've got a copy of it. People are confused. Wit what do they do with their money first of all in the air 401K. The market has recovered a little bit. Should they get out of stocks equities and going to a bunch of fake ass out why."

" Hi Rebecca Lobo basketball if you hide in your closet and don't do anything if you don't allow investment banks to do anything. I'm Daniel -- them to purchasing power especially as the Federal Reserve may try to do value to -- But as yet as -- finding out where do you put your money the market has gone up quite a bit bonds have gone up quite a bit. The reason why the markets have gone up so much too because people think all this money has to go somewhere. The problem with that is that when the next bus comes everything's gonna go down again traditionally put out of -- between stocks and bonds and divestment fight. It doesn't work anymore because everything -- so dependent of one of the area were fighting directors who is something like her. Currencies Pollack had economic apparently that the -- I got down. You've got -- bad reputation there's no guarantee you'll make money at a pretty good that we have to print more money. And it's pretty sure that economic parent is not correlated with the stock market the bond market. And so that's what investors may want to look at something like that."

" Okay so how did they go about doing that give us some mild. Guidance of where the where do they start."

" But traditionally when people think -- currencies they they think I'll let Rachel speculation we can't let ourselves parents to invest us. I'm -- the typical investor probably going to look at a basket of currencies because the dynamics are different in different regions. -- something like Australia the Australian dollar that moves in line with commodity prices. Without as much volatility. Yes something like China where -- that might want to put in his big planet me population. And that's something more controversial like the Euro for example when they euros down everybody things you're going down the drain. But people don't realize that you have a very strong currency without economic growth. Just look at Japan -- the Japanese yen has done very well on the backdrop of Avaya we economy and that's simply because the European Donald devaluing the currency as much as the Americans that."

" Okay so currency folks look there and also I know you're big on commodities -- acts like tell you. If I see one more commercial about buying older at this school company that gold company it's me. You know that this is what you see in a bubble type atmosphere that they -- that others say. Because of the US policies we aren't going to have inflation so gold may be good what are your thoughts. On what."

" We have been saying is that there may not be such a thing anymore the -- that investors may want to take a diversified approach is something as mundane as cash. And go -- played a role in that but as you point out. Well this flight -- I'm going to -- got up and down one of the reasons Michael has done so -- they become the gold market is so much smaller than a currency market. Wednesday the dollar goes down bullet just fight so that more in this same thing without -- commodities they have added complexities out of productivity. I love -- comment but that doesn't mean that's why everybody everybody have to look at the portfolio and tell them -- risk that they can afford to pay. Not so much about the trend they can -- can you -- them on a video -- and the appointment and he -- that he can he afford to lose money. -- an equity -- most people have lost confidence whatnot in the equity market so -- left him with parliament has changed -- that they can afford to risk let's not."

" Okay -- mark good advice there thanks so much for joining me the diamond district."