How'd that work out for 'ya, oh ... the last 5 years? Break even yet?
Posted on 09/04/2012 9:06:56 AM PDT by AdamBomb
Okay, with the presidential race virtually tied and the contrasts between the two being so significant, what is the best investing strategy between now and the election?
1) All Cash 2) Bonds but no stocks 3) Stocks and Bonds 4) ?????
Obviously, if Romney looks like he is gonna win, then I'd go long on stocks and the market. If zero wins, I don't know what to do.
Coal
VIPSX. This is a Vanguard fund for when SHTF.
You've got a point there! Today's star companies often turn out to be tomorrow's dogs. That's why I'll stuck with stock funds, and not with individual stocks. The risk is spread out more then.
And I like to see big oil companies on the holdings list of the funds I'm looking at.
Corrected for inflation, the DJIA is worth 50% OF the high just 5 years ago.
Silver and gold look good for the next 12 months, followed by lead, brass and blue steel.
My point is that I'm sticking with stock funds, for the stock potion of my investments. And since I sold most of my stocks back in '08, I have a VERY small stock portion. So the goofy market hasn't hurt me much.
Of course, if Romney wins and the DOW soars to 20,000, I'll be left out in the cold. But I'm okay with that.
Invest in firearms and precious metals (Lead based ammunition) You will need them for the zombie apocalypse or coming civil war.
If Obama wins, go for commodities. Not that we are really running short on Planet Earth, but Obama and the enviro-nazis will cause shortages through political means and for political purposes.
Yep, it really is. In fact, the best way to describe the stock market is that it is a kind of Ponzi scheme. As I'm sure you'll agree, people by stocks for one reason only: to sell them later, at a higher price, to some other fool.
But the market is usually a slow-motion Ponzi scheme. If you buy into a declining market (not into a red-hot one), and wait, you can make some very good money.
So IMHO, the market is not something to be avoided at all costs. Approach it like the scam it is, be very conservative, and understand it's a roll of the dice.
Preppers sites/outlets/organizations.
I too am a fan of VWINX. In fact, if I could only own one mutual fund, that would be the one. That would be especially true if the fund were in a tax-sheltered account.
But be aware that VWINX holdings are about 60% bonds, mainly intermediate bonds. When interest rates decline, those bonds appreciate and the fund makes good money. That's been the case in the last 5 years.
But if interest rates rise, and especially if they rise rapidly, this fund will take a real hit.
I'm not arguing against this fund! VWINX gives you more return than a money market fund or a CD would, but there is more risk, and you should know that.
If the risk bothers you, consider dollar cost averaging into the fund: instead of putting all your money in at once, send Vanguard a smaller amount each month.
The timetable needs to be modified.
1) Assuming Obama loses and the Democrats lose control of congress, the lame ducks intend to sabotage the economy any way they can. While only Obama can act unilaterally by executive order, the Democrat senate will refuse to act to stop a whole bunch of essential from taking place.
2) This means that while there might be an immediate reaction to the election, it will be minor compared to the potential earthquakes in January.
Therefore the best course of action right now:
1) Insure that you have mattress money in a safe place at home. Money in the bank can no longer be considered safe.
2) If you have any major medical anything, get it done before the end of the year.
3) If you have potential capital gains or income that can be taken before the end of the year, do so.
4) The wild card is Europe, which could fall apart with very little notice, and no matter what happens in the US, they could at least partially drag us down with them.
On the plus side, after the Republicans take office in January, there will be a “great stabilization” of the economy.
You said “until the election” but also said “long.” For very long, you might try something connected to a useful commodities in an energy-exporting country. Granted, I’m not qualified to give such advice to anyone. ;-)
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