Unless money is not real. I’m banking on that
There’s some wisdom in the thread, but you need to see what’s right in front of you. First, lots of people have lost and will loose their jobs, and those who still have them are now hoarding money, which means deflation. Goods on shelves will just sit there, especially as some idiot places are banning the sale of “non-essential” goods. The prices of cars are already falling. Thus, over the next few months there will be deflation, and probably by the summer your money will get the most bang for the buck. Thus, what you need is to invest in stable long term commodities. And you should think of money as an UNSTABLE long-term commodity, which is only going to lose value compared to other commodities. This is why in countries that have suffered hyperinflation (look it up, more than you think in the last 100 years) things became more important than cash. Thus items that you need that will last, such as bullets, liquor, TP, guns, H2O, salt, silver (much better priced now than gold), clothes, books (especially how-to books), lumber, land (but not necessarily real estate), and most importantly (as regards things) tools. The other most important thing is knowledge: do you know how to sharpen a saw or an ax? How do you take care of wounds (so you aren’t always dependent on MDs), do you know how to start business from scratch? I’d commend to you Tom Woods “Paths to Income.” Invest a few days a figure out how to make passive income. And don’t spend too much time on the www. Check things once or twice a day. The best thing you have to invest right now is your time; don’t waste it. Bon chance to you, and blessed Easter (I’m Eastern Orthodox, and ours in next week).
Philip Fisher (as in Buffet on his methodology: “I’m 85% Fisher and 15% Ben Graham” ) made a study of German stocks during and after the Weimar hyperinflation. He noted that high quality blue chip shares retained 80% of their purchasing power when the crisis had passed. Eliminated the need for timing required by commodity investments.
I would agree with Alberta’s Child that deflation comes first, but when the Eurodollar shortage passes, the US will be uniquely exposed to an inflation threat.
We will continue to move toward the high-technology fascism that Huxley predicted in Brave New World. Fauci’s stunning “immunity ID card” comment points to way to our monstrous future. Rural areas where you can escape the tech prison and barter or trade food and resources with other free citizens will be the only way.
I do not think it will be an overnight thing.
I was lucky and saw the virus coming back in Jan. I was able to stay in the market until about three days before the marketing started its downward slide. I move 92% of my 401K to short term fixed income, but let my balanced asset open to take advantage of the market drop.
I have 92% in Short-Term Fixed Income (Stable Value Fund) and 8% in a balanced asset allocations with a target retirement date of 2030.
The Stable Value fund has a 2.37% guaranteed interest as of Jan 1, 2020. Not sure what the guaranteed interest crediting rate means. This was the lowest risk fund that as available in my 401K.
Now that we are on the other side of the Market slide my future deposits into the 401 is 100% balanced assets. What goes down always go back up theory. My main funds (what I do not want to lose) are in the stable fund for future retirement.
I think the best position you can be in if the US crashes is: No bills, have a good new running car, paid for house, and money to pick up real estate (deflated prices). I don’t think Gold and Silver is a bad thing if you have the others in place.
Deflation verses Inflation:
The house payment is a fixed interest rate. Would I be better it off or let it ride. Albert’s Child mention deflation. A negative effect of deflation is salaries fall. I am guessing you do not what to carry a mortgage under deflation period.
Guns, ammo, silver. In a real collapse, money will have no value. As we have seen, in hyperinflation, everyone rushes to the stores as soon as they are paid to buy ANYTHING because the cash will be worth half as much tomorrow.
Regardless what anyone says, there really isn’t much one can do. Sure, you can increase your mattress investment but at some point your toilet paper will be more valuable than a worthless dollar bill. Gold? Pfffft... if it’s that bad who would even want to buy your gold?
I have my faith and that’s enough for me, but I invest in practical items that would get my family through on the short term. Long term? I invest in things that moths and rust can’t get.
Currencies have crashed and national debts have been renounced.
Life goes on.
Don’t underestimate how long a nation’s debt can continue to grow.
You’ll likely be dead.
Government printing endless money,spending the endless money and growing endless debt tends to lead to very bad things. Government says everything and lies about everything. That’s your economics and civics lesson for the day.
People still need stuff in lean or troubled days. Find out what they need and figure out how to get it to them.
“... The US debt is out of control and with these corona virus mega spending bills there is no way that the US will ever come out of debt.”
I get all the arguments for reducing the debt and they are all correct.
Here’s the reality: Once you’re 20 trillion in debt, there’s no effective difference to being 24 trillion in debt. There’s no way the US was EVER coming out of this debt. Ever. Ever.
Hopefully in my pocket or stuffed inside my mattress.
I’m waiting for Pres. Trump to announce, we did all we could without committing national suicide, it’s time to turn the corner.
Keep some cash at home. Don’t just invest in stocks and bonds-get some real assets. Consider a full pantry of food and necessities to be an investment—printing excess money usually leads to inflation—get it now. Gold, Silver, Land, any thing tangible that is “cheap” now can be sold or bartered later.
Over the years, I’ve always read that one of the first items to disappear in an emergency would be toilet paper. LOL. Wish I had bought a garage full over the last few years—I could sell it at a nice profit now.
A person needs air, shelter, water, food, medicines, guns and ammo. Whatever you can do to stock up on these—always a good investment. YMMV
We can do that (just print money) as long as we're the world's reserve currency. But what happens if/when that ever changes. Twenty-three countries are now setting up lines to bypass the dollar. China is already trading with India and I think Russia not using dollars.
bkmk
There was coverage at the time of passage ... part of the CARES Act provided that the treasury create & sell financial vehicles to the federal reserve though, ordinarily, it’s the other way around (whereby USA gave over sovereignty to the fed). In essence, it appears POTUS has swung a deal whereby the Federal Reserve relinquishes up to $4 trillion back to the US Treasury Dept. and is thus seemingly a wash for now and, in the future, reigns in the federal reserve with that newly established leverage over the fed now held indefinitely. TBD ;)
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I have come to the conclusion it’s all relative. If all your neighbors borrow a billion dollars and you borrow 800 million and the lady down the street borrows 1.5 billion. Then who is screwed. I say the financial system is screwed. That’s where we are at. I thought Japan would bury us in the 1980s. I was so wrong. I screamed it. I knew it. I felt it. I was so wrong. I don’t know the answer. Everyone is bankrupt or dependent on the bankrupt.
Honestly we could tell the world to FOAD and they can’t do shit about it.