Posted on 07/24/2021 7:26:16 AM PDT by Andy from Chapel Hill
So, Stanley Druckenmiller ("Druck") says this is the biggest bubble he has ever seen.
If we believe him, how do we adjust our IRAs and other investments -- especially for those of us approaching retirement?
I know the gold story, but what else can we do? (I like platinum better...)
ltr
fear porn from a hedge fund owner who invested
in SHORTING, naked shares, fake repos, dark pools,
and is watching his friends lose about 4 billion per week.
fear porn.
Snickers to mounds.
We have a real estate portfolio that we have been accumulating for 40 years plus. Three years ago we transferred a couple of assets through a 1031 transfer so no tax (for now) and we still have two rentals and our farm, all paid for. It wasn’t just given to us. We did things like scrape cat poo out of corners, repaint, clean up yards. In the last few years it was mostly Mr. Mercat. Lots of sweat equity. We started with a loan from Mr. Mercat’s father to make the downpayment, then used his GI bill to get a second place, living in first one and then the other, both duplexes, then bought another duplex with some friends and a swing loan, etc. etc.
Our portfolios grew a lot last year (thanks Trump) and I’ve been quietly shifting assets to more conservative stocks and efts. I figure that we’ve got another ten years. We’re in good shape unless it all GTHIAHB.
Supposedly he doesn’t work for Soros anymore.
I looked at his past “predictions”. He seems to alternate between buying and selling about every six months.
bfl
Druckenmiller was working with Soros when he broke the Bank of England.
Forgot - three rentals, one where our son lives and pays the mortgage, that was the 1031 transfer and it will be his when we die. But still on our balance sheet.
What is going to happen to your high yield bonds when interest rates go through the roof?
No other place to invest other than stock market. I remember back in early 80’s cd’s paying 10-11% or more
If it crashes it will come back.
I expect another 1999/2009 style of crash in a year or two.
That is why we are not retiring.
I don’t think the writer is calling for a crash but what is going on in the financial world is unsustainable, I appreciate the discussion
Money market instruments, what the market refers to as “cash,” may perform very well if short term interest rates spike to bring down inflation. Worked in the early 80’s anyway.
Not in a high inflationary period.
Those are probably just as bad at this point.
Hard assets: Cars, Properties, Homes, Building materials, farms, concrete (not a joke) and stuff like that.
One of the bitcoins will finally break through as the “one world currency” for the Great Reset. I’m not sure which one that is. But for those who have their money invested in the one that does get chosen, they will be akin to an Oligarch.
The average joe with no property and debt will be a slave.
Those with property but nothing else will be next in line to the slave market.
It may take a year or two for all of this to happen. If the Middle East goes up in smoke with Israel/Iran/Syria it’ll happen sooner.
Go to your local Sams Club, Costco, BJ’s - note the shelves, especially the pallets they stock on the 2nd and 3rd shelves. Every big club warehouse I’ve been to in my area has ZERO inventory on the 3rd shelf. Not a good sign!
...and how much freeze-dried food is he pushing?
That’s true if you are buying Consumer Products, gasoline, food, etc....
The value of real estate and land will plummet in price when no one will buy them because they are tapped out buying food and other necessities.....
The Dollar will still be the currency of exchange, even if you have gold you have to convert it to cash in order to invest it....
My idea is be ready to purchase hard assets that will hopefully plummet in value....
2008 in the financial meltdown, cash was king back then, Bank of America nearly went under, their stock went to below $10/share, it’s now over $30, you could have tripled your money....
I bought General Electric in the middle of the pandemic, was selling for $6.50/share and was still paying a dividend, it’s now over $13/share having gone over $14/share at one point...I’ve doubled my money in 1 year, all because I had cash....
I would love to buy a few acres of land, not right now, but 1-2 years from now, I think the price will be substantially much lower, you have to have cash to take advantage of opportunity....
Bonds move inverse to interest rates, as interest rates climb the price of bonds will fall....
Depending on your objective that might be an advantage, but IMO, I would wait until you get a interest payment you want before jumping in.....
Either way to buy bonds or stocks, you need cash...
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