Saturday, March 01, 2008

Economy souring.....Stock Market figuring that out finally.....Gold is already HIGH.....Is it Inflation or Deflation......How does one invest now?

THIS GUY SEEMS TO HAVE HAD A GOOD CRYSTAL BALL:
Warren Brussee is a retired Engineer (which brings him up one notch in my book right off :-) and he has written a book titled "The Second Great Depression: Starting 2007, Ending 2020".

I read the book over a year ago, and found it fascinating because it seemed to be describing a path to depression that was quite possible. I mean the signs were on the wall....he simply seemed to have read the tea leaves and seen this as a result.

Well, I have to day that the mess we are in right now has unfolded pretty much as he predicted in his book with housing being the bubble that is pulling all sorts of other areas down. (other areas that were also over leveraged, or poorly set-up with respect to risk)

Here is a radio show that interviews Warren, and lets you hear it right from his mouth. I suggest you listen to the man, and then if you think he makes some sense....buy the book.

Oh.....and READ his Blog for continued analysis of current events as they unfold. He posts to it monthly and analyzes data as it comes out every month and compares it to what he wrote in the book.

BUT HOW DO I INVEST NOW?:
Warren's book recommends Treasury TIPS.....but that doesn't seem like a high interest alternative.....but it is inflation adjusted.

The first question is your take on inflation vs deflation. I used to be a deflation guy....but I think that inflation is the way the USA will get nailed because the dollar will devalue because we ow so much to so many....we will print our way out of it. (we we have already begun doing with the latest government stimulus plan)

Gold just seems to expensive already.....almost feels like a "bubble" in gold....like it did with housing and the stock market in the .COM bubble era.

I hear commodities are a good place to be when there is inflation because these are generally goods that people require in the economy, and so the demand tends to be OK.

How to invest in them though...funds, futures markets, etc.....

Stuff I just know nothing about.

I will talk to my financial advisor and see what he suggests.....I'm sure it will be a fund because he "trades" in funds, and gets paid that way. Also, funds tend to be lower risk.


HOW ABOUT CURRENCY?:
I believe the US Dollar is in for a fall....so I was wondering if holding a basket of currency in a safe deposit box might be almost as good as Gold.....Ok....that is probably a bad characterization.....I wonder if it would be a good idea.

Something like 1/3rd Euros, 1/3rd Chinese Yaun and 1/3rd Swiss Francs? They say currency markets are the most volatile.....but I see the US dollar as being a real problem in the future....we are just in too much debt to everyone.

Any thoughts?

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1 Comments:

Anonymous QUALITY STOCKS UNDER 4 DOLLARS said...

Gold will continue its twenty year bull run and than some.

5:20 PM EST  

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