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Anyway, I just watched a compelling video that does not bode well for the U.S. I've just been sitting in cash and KNOW that is stupid but for many reasons I have chosen to remain liquid. Anyway, if you are so inclined, you might take some time to watch this and maybe you too will be interested in what he has to say...
I guess I am thinking of just going into gold and silver at this point as I have very little faith in either the US dollar or the stock market. I think we're headed for third worldem so I want to find a way to preserve what I have.
BTW, if you agree we're headed for third world status as well, what are your investing strategies?
There's a serious commodity bull bubble underway, why don't you ride it and get out in time
The government has proven it doesn't care if you own gold or silver, they can just steal it if they wanted.
We have an increasing population. People have to eat, drink, be sheltered, etc. And if history is any lesson, not having the money to pay for stuff won't stop people from buying on credit, and people these days are being more thrifty. Savings have been growing the past two years and debt levels have fallen off a cliff. Americans are continuing to deleverage. The only reason why we haven't recovered yet is our inept government and unwillingness to bleed the bad blood out and let healthy blood come back. Sure, it's painful, but it will solve the problem a lot faster. Don't let house values stay artificially high, let it fall and react naturally.
And the housing market is bound to recover eventually. Why? Again, because our population is growing.
If you honestly believe that we're headed for third world status, well, I feel sorry for you.
Is it possible? Sure. It may snow in hell. But I won't bet on it.
We do have our problems, but I have faith in democracy. We elected Tea Baggers not because we agree on social views, but because we need to cut spending. Heck, even the Democratic governor of our state, WA, is slashing spending because she saw the mandate of the people was no new taxes.
The government has proven it doesn't care if you own gold or silver, they can just steal it if they wanted.
We have an increasing population. People have to eat, drink, be sheltered, etc. And if history is any lesson, not having the money to pay for stuff won't stop people from buying on credit, and people these days are being more thrifty. Savings have been growing the past two years and debt levels have fallen off a cliff. Americans are continuing to deleverage. The only reason why we haven't recovered yet is our inept government and unwillingness to bleed the bad blood out and let healthy blood come back. Sure, it's painful, but it will solve the problem a lot faster. Don't let house values stay artificially high, let it fall and react naturally.
And the housing market is bound to recover eventually. Why? Again, because our population is growing.
If you honestly believe that we're headed for third world status, well, I feel sorry for you.
Is it possible? Sure. It may snow in hell. But I won't bet on it.
We do have our problems, but I have faith in democracy. We elected Tea Baggers not because we agree on social views, but because we need to cut spending. Heck, even the Democratic governor of our state, WA, is slashing spending because she saw the mandate of the people was no new taxes.
What did I miss? What tea baggers did we elect? Other than maybe Rand Paul?
Anyway, I just watched a compelling video that does not bode well for the U.S. I've just been sitting in cash and KNOW that is stupid but for many reasons I have chosen to remain liquid. Anyway, if you are so inclined, you might take some time to watch this and maybe you too will be interested in what he has to say...
I guess I am thinking of just going into gold and silver at this point as I have very little faith in either the US dollar or the stock market. I think we're headed for third worldem so I want to find a way to preserve what I have.
BTW, if you agree we're headed for third world status as well, what are your investing strategies?
If we're headed for 3rd Worldem, there's really not much that can be done, IMO.
But in case the scenario is a little less extreme than that, I think a global stock fund and a global bond fund are in order, and maybe a mix of gold/natural resources.
Mutual funds to consider:
T. Rowe Price New Era (PRNEX). Invests in natural resource stocks. Not the best fund in the group, but doesn't charge a load or have a rip off expense ratio, like most in this category.
Dodge & Cox Global Stock (DODWX) -- A newer fund but from a fund company with a good long term reputation. Although their funds stumbled badly in 2008, they still have recovered decently in 2009 and 2010 and have top notch long term performance.
Loomis Sayles Global Bond (LSGBX) Not the best global bond fund, but consistently above average and doesn't charge a load like most funds in this category. If you have 100K, you can get the lower expense share class (LSGBX). Mixing this one with DODWX might be a good idea (say 50% for each fund, rebalancing annually).
Loomis Sayles Bond (LSBRX)--not strictly a global bond fund but can invest a pretty big chunk internationally
Permanent Portfolio (PRPFX)--This could be your one fund that does it all (mix of bonds, stocks, cash, gold, Swiss Franc).
Last edited by mysticaltyger; 02-03-2011 at 05:52 PM..
Yes, but things were different back then. We made things. Wages were good. We were not the one of the world's developed economys that ranks 3rd in poverty. We had not outsourced all our jobs. Americans had a REASON to be optimistic. Things are not the same anymore. We've never seen this kind of debt. The states were not on the verge of bankruptcy. I don't know. I cannot help but look at the differences between then and now and say to myself "this cannot go on"
At the end of World War 2, our debt, as a percentage of GDP was higher than it is now. Yes, you read that right. Granted, the expenses of Medicare & Social Security weren't looming like they are now, but things were far from certain back then. It just appears that way in hindsight.
I share most of your same concerns. The US could very well end up going the way of becoming a 3rd World country.
But if we do, there's nothing you can do about it. Might as well invest. If you lose it all because we become a 3rd World country, oh well...we will all be in the same boat, anyway.
However, if we don't, you will have missed out on the gains.
So, really, IMO, there's really nothing to lose, within reason. Yes, you need to have cash set aside for potential unemployment, for your next car, emergencies, etc. But once you have enough cash for that stuff, you need to be investing the rest.
You seem to forget that holding cash also has risks. If we have a spike in inflation, your cash will lose purchasing power. Even at today's relatively low inflation rate, you are already losing purchasing power if you have all your assets in cash.
I've been reading and buying Porters work for years. One or 2 others also.
When I found them in 99, I was just learning to use a computer, as an old welder, it was BRUTAL, I tell ya!!
However, I read them, and if you read well, they give you a chuck of insight in each newsletter, and yes, of course they wish to sell that to you. We are a capitolist system after all...well whats left of that, anyway.
Honestly, if I had NOT bought a couple of letters, and some advice....I would have lost, half my savings to inflation, and nonsense of the FED.
Man, I'm sorry you folks that saw it did not get it, I thought it was dead on, and since I get thier letter, I know that parts they want to sell. It's good info, if your going to use it and learn some more to compliment it.
See, when I was in civics class in 1970, my teachers told us, if we loose the Gold Standard, whomever is pushing it, is the enemy of your nation, just like the FED is.
Most are to drunk with propagandized slop nonsense, they just think it's patrotic, hold up the big#1 finger like that means something anymore.
I started to buy gold in 2000, and silver, and then found a gold backed IRA, and now, completed all the steps, got out of dept, got rid of all those nasty dollars into tangable assets, all liquid, and ready to run, as the black booted thugs continue to take over America.
We sold our properties as they told us it would crash, and as all around me held on to property, and laughed their butts at us *you cant lose in realestate*, remember that stupid statement?
Our next step, in maybe 3 months is to find a patch of earth away from america, and watch the implosion from afar. It's going to be a doozy!! 150 years of empire building stupidity, will crash to an end. Do let the Normalacy Bias, affect you!
What did I miss? What tea baggers did we elect? Other than maybe Rand Paul?
As much as I might disagree with portions of the various parties platforms, I'm not terribly excited about using terms for sex acts in public discourse.
Anyway, I just watched a compelling video that does not bode well for the U.S. I've just been sitting in cash and KNOW that is stupid but for many reasons I have chosen to remain liquid. Anyway, if you are so inclined, you might take some time to watch this and maybe you too will be interested in what he has to say...
I guess I am thinking of just going into gold and silver at this point as I have very little faith in either the US dollar or the stock market. I think we're headed for third worldem so I want to find a way to preserve what I have.
BTW, if you agree we're headed for third world status as well, what are your investing strategies?
Scare them then scam them.
Hardly a new topic in investing.
This is why you need to buy a bomb shelter, y2k preparedness kit, or stock up on ammo (a la 2008 hysteria) at inflated prices.
This is hilarious. Would anyone seriously watch that video and then take their advice? I heard this advertised on a major local radio station the other day...maybe they should have used some of that money to make a halfway decent website.
Anyone who actually watched the video knows what Porter Stansberry's main point was. He said that he thinks the dollar will lose the status of the world's reserve currency in 2011. His video was made in early December. Look what just came out today on CNN:
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