Quote:
Originally Posted by JimInOK
Moderation is the key to all things.
Dump everything for gold and euro's? Go right ahead. But you've already taken a large market hit on your investments, you'll be buying gold high. When the turnaround comes, you'll miss the stock rebound and catch the gold hit. You've just compounded your initial losses. That's why most people lose in the market and why they tell you to assess your tolerance for risk before entering the market.
Back to moderation, selective investments in foreign stocks and a minor (possibly 10-15%) position in commodities-producing companies is a good hedge in any market. Just don't take it to the extreme, and continue to ride it no matter which direction the market is moving in a particular week.
But if you don't have the stomach for the market's downturns, don't be in the market at all. You won't beat inflation-risk outside of the market, but you'll do better than you would if you were in the market and selling out every time the bears come out.
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I definitely do not plan to dump everything and buy only gold/silver.
I'm looking at investments that are not merely a hedge against a bad economy. I'm looking at investments that are a hedge against a failed dollar.
I am now researching currency on FOREX, as I really think asian currency is the future. So I may have some of my money there.
I simply plan to have some of my money in foreign currency and global investments. Also plan to have some gold and silver on hand for emergencies.
Market downturns are natural and should be allowed to happen. When the govt. gets involved you get something much worse. I simply do not trust our govt. or the feds to do the correct thing.
I have plenty of money in the market, and have left it there. I'm not a buy and sell kind of guy. I know that, over time, the market ALWAYS goes up. Never sell during a hiccup out of panic.
And, I'm not IN a panic here. I do recognize the signs I'm seeing and I would like to have a certain level of preparation.
I really do appreciate all the info guys. Just dont want to be misunderstood.
The reading I've done on here HAS helped put my nerves to rest a little.
I do think we will see a decent increase in unemployment pretty soon.