Thread: The "Safest" Place For Your "Assets"

I don't agree with all of his thoughts, but here is John Maudlin's newsletter.... (perfect timing, was in mailbox at same time as FLTM's email.) I really enjoy reading his newsletters and his contributions are very acute using data points and real life experiences.

2010 Investment Strategies: Six Areas To Buy, 11 Areas To Sell - John Mauldin's Outside the Box - InvestorsInsight.com | Financial Intelligence, Advice & Research / Investment Strategies & Planning for Individual Investors.

he says buy:

1. Treasuries -I disagree with him here, but he makes a very compelling argument using historical data
2. income producing securities - highly, emphatically agree here
3. consumer staples/food- agree
4. small luxury items - no comment, I don't know enough
5. the US dollar - I agree. as soon as recovery is on horizon, the US$ will be the first to race out of the gates
6. Eurodollar futures - no comment, I don't know enough

interesting what he says to sell or avoid, I agree with just about all of it except for commercial real estate.... but that's a different thread.

I find it weird that anyone would consider any other option besides treasuries or FDIC-backed banks as the *safest* place for their money...

I can't imagine any less risk to preservation of capital than these two options. Real estate can go down; currencies can go down; precious metals can go down; the value of material goods (weapons, ammunition) can go down; etc.

Unless the US government dissolves, I can't imagine losing principle in treasury bills or an FDIC-insured bank.

And if you honestly and truly believe the US government is going to dissolve, why not move overseas now and convert your currency?

Just my $.02...

Originally Posted by JScott

I find it weird that anyone would consider any other option besides treasuries or FDIC-backed banks as the *safest* place for their money...

I can't imagine any less risk to preservation of capital than these two options. Real estate can go down; currencies can go down; precious metals can go down; the value of material goods (weapons, ammunition) can go down; etc.

Unless the US government dissolves, I can't imagine losing principle in treasury bills or an FDIC-insured bank.

And if you honestly and truly believe the US government is going to dissolve, why not move overseas now and convert your currency?

Just my $.02...

pretty much sums up what we've said earlier in this thread....

and you're not alone... about 66bil felt the same way you do on Jan 14:

4 week t-bill at 0%
http://www.treasurydirect.gov/instit...20100112_2.pdf

all other bills and treasuries are all bubbling high at record low yields.... but this is truly as ironclad and safe as it gets for preserving capital.

HOWEVER, at these yields, we are bound for bubble bursting and principal investments most likely will be hit hard thus alternatives are probably worth looking at i.e. Fannie or Freddie bonds since they're gov't backed just like treasuries (for now)

The problem with FDIC insured deposits is that the FDIC is 8 Billion in the hole.
They reportedly made financial institutions pay up 3 years worth of insurance on deposits upfront. In addition; it seems that nearly 1,500 financial instituitions are at risk of collapsing within a year and a half or so; not the 500 or so claimed by FDIC.

Source: Bob Chapman / Gerald Celente (Watch their videos on youtube)

Why risk it?

Gold & Silver for me; say no to the fractional reserve banking scam.

Just thought I would bump this up again as I would like to see the responses given the current economic condition and all the craziness in the world markets.

Right now I have moved about 35% of my investment partnership funds to cash, about 30% to gold/silver etf's and gold/silver stocks, and the remaining 35% in blue chip dividend payers.

Has anyone's investment portfolio changed over the past few months? If so, how? What do you see coming?

Right now M3 is contracting at a fairly alarming rate. We also have the expiration of the April 30th housing credits which take about 60-90 days to work out, and we also have the 15% dividend/cap gains tax rate expiring this year which will likely result in a selloff at the end of the year. And to top it off, the ECB just committed to purchase about $1T in EU bonds.

What are you guys seeing and what are you doing about it?

Originally Posted by GlobalWealth

Just thought I would bump this up again as I would like to see the responses given the current economic condition and all the craziness in the world markets.

Right now I have moved about 35% of my investment partnership funds to cash, about 30% to gold/silver etf's and gold/silver stocks, and the remaining 35% in blue chip dividend payers.

Has anyone's investment portfolio changed over the past few months? If so, how? What do you see coming?

Right now M3 is contracting at a fairly alarming rate. We also have the expiration of the April 30th housing credits which take about 60-90 days to work out, and we also have the 15% dividend/cap gains tax rate expiring this year which will likely result in a selloff at the end of the year. And to top it off, the ECB just committed to purchase about $1T in EU bonds.

What are you guys seeing and what are you doing about it?

Well I am not quite as sophisticated but I am focusing on rapid growth. Everyone is scared to do anything right now and I am taking advantage on as many deals as I can. Advertising is way down, businesses around are slow (except mine), I am pulling resources from clients and others daily. I see there is a need for education right now. People want to hold on to their jobs and make themselves more valuable. I am trading them leadership training in turn for work. It is working out great so far!

I am also tutoring friends on opening their own businesses and taking a portion of profits for doing so.

As far as employees go, I see lots of opportunity to pick up A players from B companies. While I am not going to be hiring 50 people any time soon, I will certainly need more help to expand my personal development business.

As far as stocks go? I am a complete amateur and am dabbling with food supply in China .

Precious metals are what give our money worth.
In the very unlikely circumstance a country goes down and its paper money becomes worthless.

They can take there gold else where and be back at the top again.

OK I will tell you guys where I have been storing my money. Way I figure doing the same as everyone else is a pretty stupid idea. I needed to find an area where the prices are low and I can walk away with items for pennies on the dollar. I've been putting my money into high end art. Something that was 50k 10 years ago you can pickup for 5k in the last year. The art world got slammed and I took advantage big time.

I only mention it because I am done buying art and want the prices to go up now.

I tried the silver but it just wasn't for me. 100oz bars are pretty cool and make a great paper weight.

I hope this is not a dupe, but what about investing in an index fund of the S&P 500? and holding of course for at least 10 years.

It will go up and down, of course, but I read that over the long run an index fund of the S&P 500 will always go out at an average yearly rate of about 12 percent.

I remember Warren Buffett promoting this.. but I actually read it from another book. I can't remember where exactly... some multimillionaire internet business owners book.

anyone?

I'm only invested in stock and real estate, because I understand those best.

Regards.

oh man! I just realized my post above was very slowlane..... I apologize to everyone. At least I realized.

Originally Posted by alainn

oh man! I just realized my post above was very slowlane..... I apologize to everyone. At least I realized.

It's only slowlane if this is your path to wealth. There is nothing wrong with investing your earnings from your income producing endeavors into passive investments that generate a return.

Not everyone can trade the markets every day. If you are good at your current business/job, do what produces the most income and stash your savings into passive investments.

The safest option is to buy rolls of pennies and canadian nickles. Pull out the ones with the copper, and in the case of nickles, the .999 nickles, and stash them. I believe there are quarters that are semi-worth doing this with, if you're going long term, and I think there are coprenickle nickles, that are currently worth about face value.

Plenty of people do this, in the states they do it either to secure their money against a fiat collapse, (You're literally paying 'face value' for coins that are worth 2 - 3x that) or in hopes that the gov' will devalue pennies and lift the melt ban.

Does rent ever dramatically slide backwards? If not, I'd buy apartments at the highest debt ratio possible, and not care about losing on principle... Simply because I don't view real estate as something you ever go out of your way to sell again.

I'd grab the multi-unit next door if I didn't have to make a down payment.