more money is lost anticipating a bear market than was ever lost enduring one. I don't know why I am even bothering replying. It's obvious all you want to do is bitch that you can't get 6% without exposing yourself to 6% risk. Good luck waiting to buy that 6% CD. Until then your cash is just dwindling away. Not as much as you think, because inflation is no where to be found, but if you insist it is go ahead and live your nighmare.
Where do we Invest in 2012 and beyond????
- Thread starter hayman
- Start date
the only reason "inflation is nowhere to be found" is because the numbers factor in housing prices (which are inflated to no end) into these numbers... if you already own, or have no intention of buying then housing prices don't matter and inflation beyond housing is 7%+ being generous. get your head out of the sandbox
60% of US debt is due in the next 3-4 years. There's going to be nobody to buy that much debt at low interest rates. Hence, the Fed will have to monetize that debt and that means rampant inflation and forced austerity.
Buy stocks, buy gold, buy real estate because they will all skyrocket in price and then buy a gun.
With the amount of inflation to be expected the masses won't be able to afford food, gas, or a house and they may just take yours.
Buy stocks, buy gold, buy real estate because they will all skyrocket in price and then buy a gun.
With the amount of inflation to be expected the masses won't be able to afford food, gas, or a house and they may just take yours.
well, it's polite of you to use the word sandbox instead of what I would probably have used. How much of that is nothing more than crude? So, are you advocating the fed raise rates to curb inflation? Notwithstanding that you are now looking for good places to get short bonds. I suppose it is eventually unavoidable, but not enough yet to discourage me from owning stocks.
we went from 126 to 135 without the fed doing anything but talking, and I don't see why we can't go back to 126 with nothing more than more talking. But I see nothing on the horizon that would cause them to act. Not houses, not crude, not drought.
This is the key passage...
If what you describe above is the case, invest in companies/entities that are able to raise prices like this and you'll be just fine. So, I dunno, ConEdison, Aetna, local muni bonds, etc...
Thanks for these very good suggestions.
And for those of you who believe that there is no inflation out there, get a clue! Perhaps if you are not keeping a fairly meticulous budget you are immune to seeing this, but inflation is here right now, and I'm not the only one seeing it. Yes, crude is behind much of it, and crude is not counted in core CPI (hence, my "bullshit" comment), but here are some of my personal year-over-year statistics here in Long Island, NY, which tells the whole story:
- Food is up over 6% (crude and droughts behind much of this)
- Electric - Rates up Up 8 % year over year (crude behind this)
- Home Heating Oil - Cost/gallon up 5% year-over-year
- Health Insurance - Up 17% year-over-year
- Tuition Increases - NY State Universities - 5% increase for next
5 years
- Gasoline - Up 5% year-over-year
- Local Taxes - Up 4% year-over-year
And the list goes on.....................Like I said, I had between 7-8% inflation year-over-year. If I strip out crude's impact, what good does that do for me? It's still 7-8%.
Unfortunately, my old company's 401K only allows me to buy from 20 or so funds, so I cannot short bonds or anything else, which I think will be a good play in 2013.
you can roll the 401k into an IRA and then do whatever you want. Drought hasn't even begun to hit the food market, and all it will affect is beef. What do you want the fed to do about crude? Will an aggressive attack on inflation help in any way? If crude falls should the fed lower rates (if that was possible) even further? You may have a point on tuition, same old education, more money, and maybe healthcare, But like the man said, yes there is inflation, but it is below the 2% limit. Can't help you on the taxes, sounds like a ballot box issue to me. Short bonds if you want to, but all they have done is make money. Once real inflation rears it's ugly head there will be no stopping it and in inflation there is REALLY no where to go, nobody makes money, not even short bond traders, the best you can hope for is to tread water long enough before you start sinking.
otherwise the greatest cost of food is crude, from the fertilizer, to the tractor running across the field to the truck that gets it to you.
heating oil, obvious
electricity, related
now you need more money, the professor needs more money, the doctor needs more money, not because of inflation, all because of crude.
you might re think that
looks like farming is great for tax purposes
http://www.youtube.com/watch?v=EFI2Fuq3dP8
Farming is just like any other business..... some will profit, some will lose everything. Regardless of weather, crop prices, etc you have to manage it just like a business.
I doubt that many people off the street can just buy a farm and make it a profitable venture.
Not a lot different than some random dude opening a restaurant..... good luck.
I doubt that many people off the street can just buy a farm and make it a profitable venture.
Not a lot different than some random dude opening a restaurant..... good luck.