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pipelines, real estate, telecommunication, nuclear power, infrastructure. Buy equity from around the world, not just american assets.
Basically you want to buy physical assets which adjust for inflation and their goods/services can be sold to consumers and at the end of the day they turn a profit.
avoid bonds and treasuries.
The only precious metals I have are all in physical coin form.
well, true or not. I would personally not go anywhere near bonds.
The underlying asset of a bond = cash. History has shown me that cash is constantly in decline, therefor, I'd argue that anything where the underlying asset is cash is the worst investment.
The trick is buying assets/businesses where the underlying assets increase in value over time and generate a positive cash flow over the long term.
The only people I've seen making decent money in bonds are the people selling them.
actually bonds had a fabulous 30 year bull run so your wrong in that respect.bonds did exceptionally well and bond investors did very well..
for the last 17 years from 1995 to present returns on bonds surpassed stocks performance in the 5,10 and 15 year time frames..
every investment eventually gets converted to dollars so that logic is flawed as well.
i will agree going forward will be tough for bonds. low rates and inflation scents can make going forward horrible for bond owners. i wont count a weak dollar because the jury is still out on what that means. throw in one other powerful factor .
MOST BABY BOOMER BOND HOLDERS HAVE NEVER BEEN IN A BOND BEAR MARKET.
when they panic like they did in stocks and sell out that could drive things down even worse.
sooooo whats the wild card? why still own bonds in a comprehensive investment plan?
nothing in my over 20 years as an investor ever plays out the obvious. never!..
its always stuff not even on the radar that just comes from left field and alters events.
think about this: from every market peak comes the biggest drops. thats at a time when things look just great for the markets and they are rising every day. this is 100% a fact.
the flight to safety for some un-known event can alter things in a heartbeat.
in 2007 bonds were shunned, rates were rising, they were on every avoid list.
then boom,the financial collapse blind sided everyone and the long treasury bond, the most shunned of all soared from even its puny interest rate a whopping 30%...
my combination of gold and long term treasuries actually absorbed the 45% loss in the total market index fund and left the mix up 5% on that horrible year.
thats why i learned never think you have it all figured out and never shun an asset class because you think its going down. own them all and profit no matter what.
bet the ranch on anyone and your not investing your speculating.
believe me if you think you figured out the obvious so did everyone else and thats why it never plays out that way.
Last edited by mathjak107; 05-22-2011 at 05:50 AM..
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