Posted on 07/17/2014 6:46:14 AM PDT by SeekAndFind
It makes sense that if you believe the dollar is becoming devalued.... holding on to them isn’t very bright. You have to own what will create more of them. Property, stocks, silver.... something. Just putting everything in cash is a method called “fearful investing”. Fear never wins anything.
I believe the dollar will more like monopoly money in the not too distant future.
May as well have something that we know will have value.
By hard assets. Rental property etc. Rent always goes up. Bonds (corporate or government) have to much risk. All you have is a bureaucrat’s word that he’ll give you your money back someday. With municipalities declaring bankruptcy who wants to own bonds? They pay almost nothing and now they’re not even safe? Gold and silver maybe. You can’t beat owning property. That’s just my humble opinion.
“The printing of more and more money is like cocaine to addicts.”
The main thing that has allowed America to live so far above its means for all these years has been the use of the dollar as a global reserve currency. Our military strength and influence has also helped here. Consider Saudi Arabia selling us oil for dollars in return for our protecting their royal family.
The fact that international transactions are settled in US dollars has effectively allowed us to export what would have been hyper-inflation by purchasing goods and resources with increasingly diluted currency.
Nothing (of this world anyway) lasts forever.
Nothing (of this world anyway) lasts forever.
So true.
Finance major here as well. Nothing looks like what I was taught. These are indeed different days. Like everything, there is a level of corruption and manipulation in the markets now. I’m still in, but just barely. Got skinned hard in the tech bust thinking maybe the old valuation rules don’t apply anymore. Won’t make that mistake again.
If the return on the CD is a couple of tenths of a percent, and inflation is at 3% ..... then the CD's are losing money at a pretty good clip.
That being said, I have CD's, too. But they're for short-term emergencies, not long term investments.
Got skinned hard in the tech bust thinking maybe the old valuation rules dont apply anymore. Wont make that mistake again.
I believe investors in companies like Tweeter and Facebook may learn of those rules in the not too distant future.
The image should say “Goldman Sachs” instead of Las Vegas.
In Las Vegas you have a chance to win some money....
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