By Jeff Neal, Optionetics.com | Fri November 26, 2004 9:45AM PT

Catherine Austin Fitts possesses an extensive array of experience with identifying and managing the various forces of economic warfare with which ethical investors and entrepreneurs must deal in order to succeed in a global economic environment.  She is president of the Solari Company, which offers investment and portfolio strategy advisory services to licensed investment managers and high net worth individuals who seek a better understanding of the opportunities created in the current complex political and economic landscape. The company also offers their clients advice on risk management and how to avoid the adverse impact of economic warfare.

It really was a pleasure to speak with Catherine Austin Fitts, especially given her somewhat alternative views about the markets. This is part 2 of our two-part conversation.

Optionetics: What are some of your favorite investment opportunities given the current global economic and political environments?

Catherine:  I like precious metals, some mining and natural resource stocks and local investment opportunities.

Optionetics: What is your most memorable investment?

Catherine: The Hamilton Securities Group. My prediction is that it will turn out quite nicely. However, I have colleagues who would say that it is too early to tell and others who would say I am dreaming.

Optionetics: With all the different technical as well as fundamental analysis tools out there, how does an investor successfully navigate the economic and political waters to effectively identify legitimate opportunities?

Catherine:  The key is to be able to look at the world whole and be able to explain everything on the back of an envelope. If it does not make sense over coffee at a truck stop, then you don’t have it.

Optionetics:  What type of analysis methodology do you employ to find domestic and global investment opportunities?

Catherine: I use a methodology called Solari Analytics. For your readers that are interested, see our description at our website, wordpressdevurl.com.

Optionetics: What are your favorite investment strategies?

Catherine:  My favorite type of investment is taking a position in something others

think is very risky when our analysis shows that over time fundamental economics will converge to create lots of opportunity – and then doing a series of things which significantly reducing actual risk as well as the appearance of risk. Examples include reengineering a company or security interest.

Optionetics: Do you ever trade or choose investments with a weekly or monthly cash flow objective?

Catherine:  Never.

Optionetics: How would you characterize your approach to the markets?

Catherine:  Spiritual.

Optionetics: What do you think are the greatest misconceptions beginning investors have about the markets?

Catherine: Markets are free. The collateral arrangements of the bullion banks and the US Treasury have integrity.

Optionetics: What would you say are the most important aspects an investor should consider before entering any type of investment strategy?

Catherine:  1) Intellectual Mastery, 2) Liquidity, 3) Exit Strategy, 4) Purpose.

Optionetics: In general, what kind of risk management advice would you give an investor or entrepreneur?

Catherine:  Understand the divine purpose for your life. Everything else flows from this combined with excellent training and practical application of mathematics.

Optionetics: Finally, how do you see the global economic and political climates shaping up over the next four years?

Catherine:  Providing for a rising Popsicle Index is not only a good investment –

it is increasingly a matter of life and death. Locking up excellent sources of fresh oxygen, water and food, plenty of alternative energy sources as well as trustworthy companions will have the best returns.

Optionetics: Thanks, Catherine, for your time. Catherine Austin Fitts brings an honest although contrarian viewpoint to investing, economics and the markets in general. Whether you agree or disagree with her approach it certainly makes one think and that is always beneficial for the investor.

For Part I of this interview, please click here.

Jeff Neal
Senior Writer & Options Strategist
Optionetics.com ~ Your Options Education Site
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