posted on Jul, 30 2012 @ 11:01 PM
As an amateur investor I am curious about what impact the 2012 phenomenon will have on the stock market and economy in general. What markets or
commodities stand to gain/lose up until the big day?
Here are some thoughts to consider:
1. I've been reading of droughts in the midwest that have the potential to increase food costs up to 30%. The price increase is expected to start
impacting us around December-February. However because of the 2012 crazies, should we also expect hoarding of food at the same time to increase
2. If there is a dramatic increase of food costs how will this affect companies that rely on seasonal events such as Christmas, Boxing Day, and Black
Friday? Assuming people are spending more on food, that will mean less on toys... IPads, Phones, TVs, and other electronics. Should we dump all our
stock in retail outlets(Best Buy, Circuit City, etc..) now and buy them up in the next quarter when losses are made public?
3. Gold and Silver have typically been seen as a way to protect wealth from inflation or economic collapse. As we saw in the 2008-2009 the price of
Silver was almost double what it is now, and it was all caused by fear. Top that with the fact many experts believe 100 times more Silver is traded
each day than even exists, and a Silver shortage is expected in 5-10 years at its current rate of change in production vs demand. Ironically 50% of
all the physical Silver produced used each year in the USA is put into coins and trusts, while the other 50% goes to actual useful purposes. So if a
large number of people ran to Silver as a safe haven for their wealth we could see that 5-10 year forecast becoming much shorter. I personally think a
physical Silver Trust such as Sprott could be a great short and long term investment.
Anyone else have any thoughts? I'm not trying to prove any of the above statements right, just looking for investment opportunities.
On a related note....During the 2008 recession I put a bunch of money into Seagate(STX) at 3.30$ per share, then sold out around 15.00$. Partially
luck, and partially due to the fact that I am an IT professional and have great faith in the brand. Especially after they bought Maxtor and revamped
their quality control. If Seagate drops again I will be placing a large portion of portfolio in that company. The only downside I can see would be the
fact that I need to use American currency for the transaction. There is too much speculation around the US dollar, and that is a problem considering I
am a Canadian. (Any inflation in US dollar could negatively affect the exchange back to CDN$)
edit on 30-7-2012 by centrifugal because: (no