posted on Jan, 27 2014 @ 11:10 AM
reply to post by EA006
Asset bubbles will form. Where? and what should I do?
1. First, understand the drivers and basic nature of asset bubbles and how to recognize them before they burst.
a) US Equities. @ all time highs. Fundamentals don't come close to supporting current valuations. US Federal reserve and to a lesser extent
the G7 central banks are debasing currencies at the same time so none seem to inflate against the others. CB's are not likely to change behavior
until they are forced to.
b) Residential Real Estate. 60% of all transactions are cash only. The printed money is coming home to roost. It's US banks, hedge funds and
foreign investment. Very little in the way of new home construction though so supply is under control of Banks holding a huge pool of foreclosures.
2. Deploy hedges against the risk of currency collapse.
a) Farmable land in stable jurisdictions. Ideally, income producing property bought with cash (or if possible, unsecured loans.)
b) Physical precious metal. Gold, silver platinum and palladium. The markets are artificially suppressed, and all are priced for
accumulation. Only buy PM's with savings, don't speculate and deploy money you are likely to need soon.
c) Bank at credit unions.
d) learn to grow food.
e) Barter and buy local.
f) When you consider a vehicle, plan for $10/gallon gasoline.