Posted on 03/25/2011 3:18:10 PM PDT by blam
HOWARD DAVIDOWITZ: We're At The Edge Of A Dollar Crisis, The DOW Could Fall 6,000 Points
Peter Gorenstein
Mar. 25, 2011, 3:46 PM
There's a distinct possibility the U.S. stock market could plunge as much as 6,000 points if the U.S. continues to rack up record amounts of debt, causing the dollar to lose its reserve currency status, says Daily Ticker favorite Howard Davidowitz. (See video below)(Click to the site to see the video)
"The dollar has never been at greater risk," he tells Henry in the accompanying clip. Davidowitz is confident that if Washington doesn't cool its spending habits, interest rates will spike and inflation will soar. Look at the value of the dollar, and the crisis is already brewing, with foreigners and sovereign nations diversifying away from dollar-denominated assets, he says.
What's an investor to do in this scenario?
Buy hard assets, he suggests. Davidowitz says investors should own physical gold, silver and diamonds. He also thinks land is a winning bet, even suggesting young adults buy and work farmland. "I think investment in farmland with water on it is a great investment. Finance will be less important," in the future, he says.
Admittedly, Davidowitz missed the V-shaped recovery in stocks. However, he was not invested in stocks ahead of the crash. Instead, he bought high-yielding bonds three years ago. He's now diversifying out of that trade, worried about higher interest rates. The bonds he does own are short-term corporates. And, he does own some dividend-paying blue-chip stocks.
(Excerpt) Read more at businessinsider.com ...
Yawnnnnnnnn. Unless the author is personally short in the market, this is just noise.
The only problem with this analysis is that inflation should make everything go up in price—including stocks. Of course, if wages are flat, some companies will sell less because people will spend more on necessities (gas & food).
I’ve been hearing this for several years. I expect one of these days the doom-and-gloomers will probably be right.
Won’t be pretty to watch. I took all my money out of stocks the last time it was 12K, missed a lot of gains when it came back up, but I’m paranoid the stimulus bux are not going to prop this thing up forever.
Yeah right. Keep believing that. You have no clue what is going on.
See Zimbabwe. I said Obama would be Mugabe 2 and I was hoping that I was going ot be wrong.
Correct. When I have a clue, I'll invest. Please tell us if you have a clue and are shorting the market? If you believe the market is going to fall, (not saying you do) why aren't you putting your money where your mouth is? If you are shorting the market please give us details. How much and what period?
Its not noise, its a political strategy.
The GOP strategy is to talk, talk, talk the economy down, down down.
+1
The public is so brainwashed by Obama Tv and Fox is no better. People in this country have no clue what is going on and have no clue how bad things can get. They may find out sooner than later.
Another Gold salesman.... I had to limit my viewing of FOX because I got tired of all the commercials selling me GOLD.
I’m pretty much convinced all these folks buying gold will be the victims of the next bubble.
Don’t know about the Dow, but a dollar will be worth zero in the ralatively near future.
A dollar is only good to a normal person if he can exchange it for something that he wants, and collectively, we can only have the amount of “stuff” that we produce regardless of how many dollars are created.
If the government prints vouchers for a million turnips, but only 10 turnips get raised, a whole bunch of people will have to go to bed without their turnip soup. And guess how much turnip vouchers will be worth then.
Somebody who understands the Federal Reserve please explain the flaw in this reasoning.
You cannot short the market when the Fed is printing worthless electronic money. It would be a suicide mission. I am not shorting the market.
I would prefer to buy an asset class that would go up when the markets tank versus shorting. Mainly to hedge.
And nobody needs to try to hype how bad things are like you think this guy is hyping. He may be but the reality is probably even worse. The country is insolvent and it is getting worse each day. People/capital outside the USA realize how bad things are here and how bad the usurper is.
I prefer to deal in reality versus some people here living in a TMC dreamworld of old Gary Cooper movies. TMC aka Time Warner aka Price Al Waleed’s TW.
This QE 1, 2, 3.... is to inflate the market while destroying the dollar (PERMANENTLY lowering your standard of living) and bankrupting America - so clueless idiots look at their IRA and 401K and think they are not being destroyed.
They then turn on the lying Obama TV with all the Obama love and happy talk BS lies.
“Oh a new poll shows most people think Palin is the Devil and Islam is sweetness and light.” Fox is only slightly any better. Prince Al Waleed’s talking dummies on Fox like O Reilly, Beck and Coulter making fun of birthers.
This country now is so corrupt. Rotten to the core.
Bankrupting the country is not “GOP strategy.” Man there are some dumb people on here or shills.
I will not waste my time but on Nov 2008 - Atlas shrugged. Until the usurper is gone - nothing will improve.
Thanks. I learn something new every day.
Frantzie
Follow-up...Trying to learn from you. If I can’t short the market, can I go long? Should I?
Drama Queen.
There is no question about that. From a money making point of view, the question is when to get in or out of certain investments.
But you can make book on the *fact* that the SWHTF. Guaranteed. Just like Namath and the Super Bowl. Ask the Colts.
Me, too - as well as talk radio. Because I don’t care aout my “sleep number” as long as it’s 8 hours or so.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.