I think what you need to consider in the potential scenario ahead is "stagflation". Where you have rising unemployment because of a recession, coupled with inflationary prices we're already exposed to. We can see deflation in the housing market, which is most likely the only place we will see it. And the cost of goods everywhere around us, from stamps to gas to insurance to taxes to a million different consumer products, have been so jacked up that they are at a stage where they're on the edge. So, if unemployment were to start it's hit on the economy, we may find ourselves in a tight squeeze.
I don't think the unemployment factor will be something we see in the short-term because of how well our companies are doing in terms of revenues (aided by the tax cuts). But if these companies see less demand for their goods on the horizon, that's when a stagflationary scenario may start to set itself up.
As far as where to put your money, I'd like to get people's opinions on these: Currencies - not sure which ones. Any standout countries that would weather it better than others, even prosper as ours turns down?? Gold used to be the place to flock to, but is it really still the place to flock to?? Platinum?? Utility, pharmaceutical, drug companies, alcohol and tobacco companies?? Since the government passed that law on ethanol (don't remember the finer details), when we start to assimilate and incorporate that into the producer and consumer, do you think those companies (I'm aware of Mexican and Brazilian presence here, South African also) would prosper and grow??
One more thing....if the government were to step in somewhere, say a year or 2 or 3 from now, in an attempt to spur the economy, what sector/s might interest it?? *assume it'll wind down it's military powerhouse* (I feel it's a big assumption, but I'm just curious)
I don't think the unemployment factor will be something we see in the short-term because of how well our companies are doing in terms of revenues (aided by the tax cuts). But if these companies see less demand for their goods on the horizon, that's when a stagflationary scenario may start to set itself up.
As far as where to put your money, I'd like to get people's opinions on these: Currencies - not sure which ones. Any standout countries that would weather it better than others, even prosper as ours turns down?? Gold used to be the place to flock to, but is it really still the place to flock to?? Platinum?? Utility, pharmaceutical, drug companies, alcohol and tobacco companies?? Since the government passed that law on ethanol (don't remember the finer details), when we start to assimilate and incorporate that into the producer and consumer, do you think those companies (I'm aware of Mexican and Brazilian presence here, South African also) would prosper and grow??
One more thing....if the government were to step in somewhere, say a year or 2 or 3 from now, in an attempt to spur the economy, what sector/s might interest it?? *assume it'll wind down it's military powerhouse* (I feel it's a big assumption, but I'm just curious)