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Five Major Themes
- Theme One
- Theme Two
- Theme Three
- Theme Four
- Theme Five
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Ciovacco Capital Management, LLC (CCM) is an independent money management firm based in Atlanta, Georgia. CCM helps individual investors protect themselves from inflation while minimizing the probability of investment losses via research, disciplined risk management techniques, and globally diversified investment portfolios. Since we are a fee-based wealth manager, our only objective is to help you protect and grow your assets. Our long-term, theme-oriented approach allows for portfolio rebalancing from time to time to adjust to new opportunities or changing market conditions. CCM’s risk management and stop-loss disciplines help preserve principal in even the most challenging investment environments.
As independent money managers, we provide long-term financial planning, wealth & estate preservation strategies and prudent investment advice in a challenging environment for investors. If you are looking for financial planner or money manager who takes the time to understand your personal situation, Ciovacco Capital Management may be a good fit for you.
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Deflation Now - Inflation Later
Alarming Expansion of Money Supply Will Eventually Lead to Inflation
The chart below was created on the website of the Federal Reserve Bank of St. Louis. It shows the eye-popping expansion of the money supply as financial institutions have swapped securities and other "assets" for cash via borrowing from the Federal Reserve. Borrowing prior to this crisis is barely visible on the graph. Recent borrowing is an extreme example of the term "spike" on a graph.
After reviewing the chart above, you can understand why the expansion of the money supply is the number one investment theme for 2009 and beyond. You cannot expand the money supply at unprecedented rates without sowing the seeds of future inflation. It may not start until late 2009 or in 2010, but inflation is coming like we have not seen since 1974-1982. Managing assets during the shift from concerns about deflation (protect your principal) to concerns about inflation (protect your purchasing power) will be the most important task for investors in 2009 and 2010.
Fed's Options in a Zero Rate Environment
At a time when interest rates are sinking toward zero around the globe, it is important to understand possible nontraditional ways for policymakers to fight deflation. These 2002 comments made by then Fed Governor Ben Bernanke outline in detail Federal Reserve options in a low interest rate environment. It may help us better understand the possible range of Fed actions in the next 18 months.
Links to Articles & Research On The Expansion of the Money Supply
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