by Charles Hugh Smith, Of Two Minds:
An investment that can be gutted by financial rules changing overnight is not safe.
What’s the safest investment as the global economy enters increasingly risky, troubled times? I’ve reviewed hundreds of academic papers, investment reports and newsletters and researched long-term strategies and backtests and reached one conclusion.
I won’t keep you in suspense: it’s bat guano (or seabird guano if you can’t get the bat stuff). Yes, bat doo-doo is the safest single investment on the planet.
OK, so I didn’t do a lot of fancy research because that would have been a waste of time. If the era we’re entering is fundamentally unlike the previous eras, then studying past investment results and strategies will generate dangerously misleading conclusions.
Here’s the thinking that leads to bat guano being the number one Safest Investment.