Time to exit the market?

EricJonrosh

i keep mine in a banana stand in OC.

i've said too much.

Frozen bananas? lol

NYactor1

The market is definitly overbought...due to Ben's spending spree. This just forces us to find alternate ways to move. Keeping it under the mattress in a 2/3% inflation environment isn't very attractive. Physical assets, such as metals I'm not too fond of because they don't necessarily produce, they are essentialy a hedge. Buying an apartment building is a solid idea, especially with loan rates at the current rates. I'm sticking with dividend paying blue chips, many of which make much of their profits overseas. Coca cola, McDonalds, Johnson & Johnson, etc. this helps with international diversification without dealing with any tax/currency issues. I'm also a fan of mlp's and reits' s for income purposes - but they require bit more research. Bottom line - there is no easy answer.

InnerConflict

Trying to time the market is a fool's game.

craigmandu

Physical assets is the way to go, whether it's gold, silver, copper, etc. I wouldn't touch stocks or bonds with a billion foot pole right now, or in the near future. It's a hot mess right now, and there is a lot more going on than meets the eye with market manipulation (think Enron). The US doesn't produce anything, you can't garner real wealth from a country that only sustains itself on services. Either look into other countries's assets (though they're all about as broke as us), or buy actual goods that have a resale value like precious metals. If I was you I'd leave the market as soon as possible, before everyone else jumps ship.

The problem I see with physical assets is that in a scenario where these are the primary assets and we are living in a barter trade economy, you need a lot of physical force and protection. You need to be able to store, protect and transfer your assets. People like you and me do not have the means for that kind of protection.

Nothing wrong with having some precious metals...they are a great "hedge" against inflation. I wouldn't personally stick everything I had in them as I don't think it would "protect" you as much as others do. I have a friend who puts alot of money in metal funds...but the truth is, without actually "having" the metals on hand, how is he assured they really have the amount of "backed" assets to hold the fund value? In our day and age, fractional-reserve practices make it easy for firms to "cook the books" so to speak. It's not exactly "easy" to get an ounce of gold converted to whatever the spendable currency of the time is...

It is true that the US doesn't produce goods like it use to, but guess who does? The large companies who are global in nature. They may not be producing products "in" the U.S. but they are producing them somewhere, and bringing them to the U.S. to sell.

I would never tell someone that "wants" to get out of the market to stay in, as not losing money is just that, it isn't losing money (except for what inflation is taking of course). It is your decision and if it were mine, I would still keep some in large cap/dividend producing equities in companies that have a global stance.

I hope you have great success!

NormInv

Physical assets is the way to go, whether it's gold, silver, copper, etc. I wouldn't touch stocks or bonds with a billion foot pole right now, or in the near future. It's a hot mess right now, and there is a lot more going on than meets the eye with market manipulation (think Enron). The US doesn't produce anything, you can't garner real wealth from a country that only sustains itself on services. Either look into other countries's assets (though they're all about as broke as us), or buy actual goods that have a resale value like precious metals. If I was you I'd leave the market as soon as possible, before everyone else jumps ship.

The problem I see with physical assets is that in a scenario where these are the primary assets and we are living in a barter trade economy, you need a lot of physical force and protection. You need to be able to store, protect and transfer your assets. People like you and me do not have the means for that kind of protection.

Nothing wrong with having some precious metals...they are a great "hedge" against inflation. I wouldn't personally stick everything I had in them as I don't think it would "protect" you as much as others do. I have a friend who puts alot of money in metal funds...but the truth is, without actually "having" the metals on hand, how is he assured they really have the amount of "backed" assets to hold the fund value? In our day and age, fractional-reserve practices make it easy for firms to "cook the books" so to speak. It's not exactly "easy" to get an ounce of gold converted to whatever the spendable currency of the time is...

It is true that the US doesn't produce goods like it use to, but guess who does? The large companies who are global in nature. They may not be producing products "in" the U.S. but they are producing them somewhere, and bringing them to the U.S. to sell.

I would never tell someone that "wants" to get out of the market to stay in, as not losing money is just that, it isn't losing money (except for what inflation is taking of course). It is your decision and if it were mine, I would still keep some in large cap/dividend producing equities in companies that have a global stance.

I hope you have great success!

Agree 100%.

Yes I am chickening out and exiting but I agree with your analysis 100% including what you said about metal funds are not really owning metals.

binglebandit

Physical assets is the way to go, whether it's gold, silver, copper, etc. I wouldn't touch stocks or bonds with a billion foot pole right now, or in the near future. It's a hot mess right now, and there is a lot more going on than meets the eye with market manipulation (think Enron). The US doesn't produce anything, you can't garner real wealth from a country that only sustains itself on services. Either look into other countries's assets (though they're all about as broke as us), or buy actual goods that have a resale value like precious metals. If I was you I'd leave the market as soon as possible, before everyone else jumps ship.

The problem I see with physical assets is that in a scenario where these are the primary assets and we are living in a barter trade economy, you need a lot of physical force and protection. You need to be able to store, protect and transfer your assets. People like you and me do not have the means for that kind of protection.

That's a very true problem, but it's a lot easier to protect something you physically have, compared to something that is owed to you in the form of an I.O.U. that you'll never be able to get your hands on, and with no guarantee that it'll be paid back. Not to mention all those banks in Cypress, and the runs on banks in the past. Really there is no safer way to have your assets than in physical assets, plus it's real wealth, rather than just numbers on paper. The majority of these companies are borrowed into existence, and none of them have any sort of real material value to show for it. When they go out of business, they won't have anything to liquidate. Look at Facebook, how are they going to sell that when it hits the fan? Most of these companies are going to disappear as quickly as they showed up, with nothing to their name, and nothing to pay back their share holders. I suppose then you wouldn't have to worry about protection, as all you'd be left with is a worthless piece of paper. Not saying physical assets are by any means ideal, but they are better than the alternatives at the moment.

binglebandit

Physical assets is the way to go, whether it's gold, silver, copper, etc. I wouldn't touch stocks or bonds with a billion foot pole right now, or in the near future. It's a hot mess right now, and there is a lot more going on than meets the eye with market manipulation (think Enron). The US doesn't produce anything, you can't garner real wealth from a country that only sustains itself on services. Either look into other countries's assets (though they're all about as broke as us), or buy actual goods that have a resale value like precious metals. If I was you I'd leave the market as soon as possible, before everyone else jumps ship.

The problem I see with physical assets is that in a scenario where these are the primary assets and we are living in a barter trade economy, you need a lot of physical force and protection. You need to be able to store, protect and transfer your assets. People like you and me do not have the means for that kind of protection.

Nothing wrong with having some precious metals...they are a great "hedge" against inflation. I wouldn't personally stick everything I had in them as I don't think it would "protect" you as much as others do. I have a friend who puts alot of money in metal funds...but the truth is, without actually "having" the metals on hand, how is he assured they really have the amount of "backed" assets to hold the fund value? In our day and age, fractional-reserve practices make it easy for firms to "cook the books" so to speak. It's not exactly "easy" to get an ounce of gold converted to whatever the spendable currency of the time is...

It is true that the US doesn't produce goods like it use to, but guess who does? The large companies who are global in nature. They may not be producing products "in" the U.S. but they are producing them somewhere, and bringing them to the U.S. to sell.

I would never tell someone that "wants" to get out of the market to stay in, as not losing money is just that, it isn't losing money (except for what inflation is taking of course). It is your decision and if it were mine, I would still keep some in large cap/dividend producing equities in companies that have a global stance.

I hope you have great success!

That reminds me of those gold bars we gave China that just happened to be tungsten on the inside. I guess we didn't think they'd drill them to make sure it was 100% gold. Whoops. If you're buying precious metals, buy the real deal, not a certificate. Most of those certificates are never going to be redeemable. There isn't enough silver on the market to fulfill the current silver certificates right now, only going to get worse.

binglebandit

i keep mine in a banana stand in OC.

i've said too much.

:laugh: :laugh: :laugh:

ldrosophila

Physical assets is the way to go, whether it's gold, silver, copper, etc. I wouldn't touch stocks or bonds with a billion foot pole right now, or in the near future. It's a hot mess right now, and there is a lot more going on than meets the eye with market manipulation (think Enron). The US doesn't produce anything, you can't garner real wealth from a country that only sustains itself on services. Either look into other countries's assets (though they're all about as broke as us), or buy actual goods that have a resale value like precious metals. If I was you I'd leave the market as soon as possible, before everyone else jumps ship.

The problem I see with physical assets is that in a scenario where these are the primary assets and we are living in a barter trade economy, you need a lot of physical force and protection. You need to be able to store, protect and transfer your assets. People like you and me do not have the means for that kind of protection.

That's a very true problem, but it's a lot easier to protect something you physically have, compared to something that is owed to you in the form of an I.O.U. that you'll never be able to get your hands on, and with no guarantee that it'll be paid back. Not to mention all those banks in Cypress, and the runs on banks in the past. Really there is no safer way to have your assets than in physical assets, plus it's real wealth, rather than just numbers on paper. The majority of these companies are borrowed into existence, and none of them have any sort of real material value to show for it. When they go out of business, they won't have anything to liquidate. Look at Facebook, how are they going to sell that when it hits the fan? Most of these companies are going to disappear as quickly as they showed up, with nothing to their name, and nothing to pay back their share holders. I suppose then you wouldn't have to worry about protection, as all you'd be left with is a worthless piece of paper. Not saying physical assets are by any means ideal, but they are better than the alternatives at the moment.

this is what happened to the www.com bubble in the end there wasnt really anything there