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How Doomy will Doomsday be? How will you prepare?

Discussion in 'Economics and Financials' started by vt_dolfan, Aug 9, 2010.

  1. vt_dolfan

    vt_dolfan Season Ticket Holder Club Member

    The Doomsday word was more for shock value....but suffice it to say that many of us are not very bullish on the economic future in the short to mid term of our country. We've all heard or read nightmare scenarios ranging from a prolonged recession, to a double dip, to an out and out Depression.

    For someone like me, where understanding the financial mess we are in does not come easy.....

    Whats the extent a responsible person should take to keep his or her family safe?

    For example....I have quite a ways until I retire....probably another 20 years...so for my 401K 98% of my allocations at the moment are in Stock Investments, with the balance in Bonds.....my thinking is that my length left will absorb the ups and downs of the market in the longterm....but will the market still look the same when all is said and done?

    What will the warning signs look like when we should be concerned about pulling money out of the bank, or is that really ever something we should worry about?

    I picked a great time to give up sniffing glue.....uh..I mean getting more responsible with my money...but better late than never...would love any ideas on what you all are or are not doing.....
     
  2. Stringer Bell

    Stringer Bell Post Hard, Post Often Club Member

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    If you think things will get worse, just short the market. If you're concerned with an investment you have, you can always hedge against yourself.
     
  3. padre31

    padre31 Premium Member Luxury Box

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    Imho the new coin of the realm in investing in the US is pricing power, very very few listed companies have the ability to raise prices and still grow their businesses and shareholder value.
     
  4. my 2 cents

    my 2 cents Well-Known Member

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    Depends on how concerned you are...I said in another post, i am struggling with the same issues........could we have a complete currency meltdown...yeah could happen, could we fave anything from a short recession to a depression....yep either could happen...so much of what you ultamitly decide is based on your own views on how bad things could get........I am leaning towards some standard blending of investments including foriegn currencies, we have from a business standpoint set up an off shore company that will trade in non USD transactions, we have bough a lot of "stuff" including properties and diversified in some other "creative" ways.........but the balance of those scenarios will require more vigilance and change as LT yields on bonds inevitabally go up and equities are getting scarier daily to me,,,,the best investment and return you can make with extra money is always in yourself as a business owner but that is not for the meek......overall I think the period we are entering is more about "protecting" your money than inceasing your yield past inevitable inflation since deflation is the biger short term concern......also depends on what your view of long term and short term is............man this is a tough freakin question............................
     
    vt_dolfan likes this.
  5. my 2 cents

    my 2 cents Well-Known Member

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    Agree with that big time!
     

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