Discussion in 'Bullion Investing' started by yakpoo, Feb 18, 2013.
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If the banks hadn't been nationalized in 2008, ATMs would have ceased to function and we were only hours away from a run on the banks.
The stock market dropped 8000 points.
GM was forced into bankruptcy.
Homes lost 60% of their value.
Unemployment soared. My employer laid off 8000 people.
How did you feel watching your life savings evaporate as you tried desperately to sell off paper assets.
What if anything has changed? Is it possible we're facing worse conditions now than then?
I don't feel any better about the economy and I'm buying silver because I want to preserve what I have.
Good luck to us all.
My self talk... "don't go crazy, stick to the plan, keep small mortgage, no CC dept, buy XX amount silver a month, don't go crazy,...." I'm pretty good at everything but not going crazy. lol
Thankfully my wife reminds me to have some fun once in a while.
I like McDonalds, Cheveron, Exxon for starters.
That was not my take on things at all. Not sure if that is the generalized opinion of others. The banter in this post strikes more like, if you can't beat them, then don't join them.
Creativity and self direction can help people feel like they have a chance. Better than a bud on the sofa with the Main Stream Media blaring and a gut filled with much fear that one cannot begin to see any opportunity or hope.
PM's are some folks view or spin on opportunity. Not sure if timing and a correct call is as much as important as a person feeling like they have some say or influence on their personal outcome.
That's my $2.00 dollars worth. With that said, I might add that many folks share your opinion. Does not make any of us right or correct - at least not yet-maybe never.
Easy does it!
It was a scary time, but the correct move was not to desperately sell of your paper assets. The smart play was to double down and buy more. It took a little bit of guts, but those who did, bought a whole butt load of cheap equities and are sitting pretty now.
I don't think Gold and Silver prices are this high because of mining costs and demand, but with the amount of debt the USA is in, I don't see how we can continue printing fiat currency without a total debasement of the Dollar. This recent dip in PM prices makes me want to sell because the economy is getting "visibly" better, but I know that our financial system is still fatally flawed at it's core and drawing ever closer to the edge of disaster with the more white-wash we put over it.
I'm enormously positive but recognize ugly when things are ugly. We've been in a depression since the dot.com meltdown in the spring of 2000. Once you stop dinking the stats, GDP has been flat to negative ever since. There are two asset bubbles today that you need to be aware of : the stock market and the student loan aggregate debt. I'm not saying to fight the fed and go short side, but CYA in equties. As for Student Debt - don't buy any student paper and try to avoid mutual funds that do.
The economy is still in the tank and will remain so for another ten years or so. Sorry. We've got economies - the economy of Yes and the economy of No. In Yes, you're working, spouse is working, you have retirement plans, benefits, IRAs, savings, a fixed mortgage or a house that's paid off, kids are in college. Life is good. Another glass of wine?
And then you've got the economy of No where you lost your job to outsourcing back about 10 years ago and then worked in housing construction till that blew up. Your unemployment has expired, wifey works for min. at Walmart w/o benefits or retirement, you've spent your 401 and savings, you behind on the mortgage and are looking at foreclosure, sons a druggie and daughter's preggers. Life sucks. Hey, you got another of them beers?
And please realize that there are 100's of thousands of americans that were doing all the right things are still got thrown under the bus.
A large part of the problem is structural in that we're shifting from Industrial to Information based economies and the old guard is NOT going quietly. They have money and they spending it to buy votes in congress. Congress isn't broken, it works very well. It's just bought and paid for. Do NOT look to washington for any help or relief.
You need to diversify your wealth and also go into a quasi-survivalist mode - I'm not suggesting the cabin in the woods.
Pay down your debt, diversify your wealth, add to your job skills and resume', add to your contacts, volunteer local, get involved at the grass roots level.
Hey, I'm 64 and officialy retired. However, I take classes at the CC (I have a BA in Econ) and am a serious gardener. That led me to volunteer as a docent in the gardens at MSU. I'm pres of my local garden club. I've been a township planning commissioner for 20 years and was just elected as a Trustee. [note that I had to run as a republican out here in the sticks but ran as a Real republican - fiscal conservative (the gov't baloance the books and pay their bills just like you and I). I'm socially tolerant [civil lib and sunday school] if no one gets hurt and I don't have to watch, I don't care what you do and lastly, I'm a tree hugger like Teddy Roosevelt.
Hey, this can be fixed but it has to start with us and work out neighbor by neighbor. Help ain't coming from Washington.
No, Mike. 2007 WAS the correct time to sell everything - that was the smart play.
The less aggressive call (rather than EITHER/OR: "Do Nothing" or "Sell All") was move moderately : sell the crap (50-75%) and fully hedge whatever value remained in your portfolio.
That's what I had clients do. GET OUT!
Otherwise you stay in & lose -50%, you'll need to GAIN +100% just to break even. (Doubling down? No, that's INSANE.) In real-life, my clients suffered max-loss -15% in 2008 (2008 Return was +15%, however) and then we went leveraged long on Faber's 3-6-2009 call (waiting for that Mary-Mother-of-God Rally, sometime in 1Q 2009) & UP 60% in 2009 w/ well-diversified strategy and ~60/40 Eq/FxInc allocation.
Buffett says the key to making money in the mkts is NOT losing money. Scary times are times to evacuate early, period. Little retail noobs need to know it, especially: watch the herd, get outta the way! Hold-&-Fold is NOT a sound investment strategy.
I remember when silver dropped to $9.00 per ounce from $15-17. Many folks had silver holdings bought in the $4.00 to $6.00 range. But with the drop, they were under the control of fear and panic and thought it was going down to nothing so they were shook loose. Selling their silver bullion and pre 1965 halves, quarters and dimes by the bags full. However, many had a "little bit of guts" and didn't follow "the herd", by being influenced by the "nay sayers".
You'll hear many opinions on this subject and you'll just have to sort them out and decide to do what's best for you. Myself and many others think long term when it comes to silver. Be Bold-&-Hold CAN be a sound investment strategy to those with patience.
The Financial Accounting Standards Board (FASB)...a bunch of "know-it-all" IDIOTS...created Mark-to-Market accounting that very nearly destroyed our economy. The rule was modified in April 2009.
I jumped back into the market with both feet once FASB-157 was modified...and made a killing!!!
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