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What the heck do I invest in?

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  • Wed, Jan 14, 2009 - 06:41pm

    #1
    peter445

    peter445

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    What the heck do I invest in?

Okay, I have read and written about everything on CM’s website.  Besides gold and silver, where I’ve already established a sizable position, what ELSE should I invest in for the near and long term?  Commidities are iffy, bonds are bubbling, my stocks are jiggling, and the nest egg is getting cold (sorry, I REALLY miss Chick Hearn).

Seriously?  What should I be acquiring?  I know you need my goals and stats and all that.  Just general responses will suffice.

Thanks,
Peter

  • Wed, Jan 14, 2009 - 06:56pm

    #2

    cat233

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    Re: What the heck do I invest in?

peter445,

Have you really read everything on this site?  Are you a subscriber to this site?  If so, look in the Subscriber Forum and you will have your question answered many times over in great detail.  You will also have access to The Martenson Report as well as Chris’ podcast.  Your return on investment will be more than monetary, it will be through knowledge as well, and it will be immediate.

Cat

 

  • Wed, Jan 14, 2009 - 06:59pm

    #3

    Lemonyellowschwin

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    Re: What the heck do I invest in?

Peter,

Everyone is asking themselves the same question.  I am not sure there is any obvious answer.  Here is a stab:

1.  Cash on hand.

2.  As much as you are comfortable with in PMs and their offshoots.

3.  Buy usable goods.

4.  Pay down consumer debt.

5.  What next?  How about short-term FDIC-insured CDs while you wait and watch?

  • Wed, Jan 14, 2009 - 07:32pm

    #4

    Dogs_In_A_Pile

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    Re: What the heck do I invest in?

Peter – Welcome to the site. 

I’ve been here for 6 months and still haven’t read everything so good on ya.

 Probably no 100% answer to your question but here’s my $.02.

1. Zero your debt.

2. Start building mutually beneficial relationships that function on a barter system.  The girl who cuts my hair has a customer who does a lot of gardening.  She cuts his hair for free and he brings her fresh vegetables and fruit every two weeks.  Go as far as planning out a community with a range of skill sets.  Doctors, nurses, veterinarians, farmers, mechanics, farriers, electricians – whatever you think you might need.  And be ready to defend it.

3. Zero your debt.

4. Sensible stockpiling.  Ammo, non-perishable foodstuffs, bottled fuel, water purification kits (filtered, not iodine tablets), portable shelter (tents, etc.)  You get the idea.

5. Zero your debt.

6. Gold and silver in small, exchangeable pieces.  If the poop hits the fan, there will likely be some form of emergency scrip currency, but that will take time to implement.  Gold and silver will likely never lose their appeal.

7. Zero your debt.

8. Learn how to hunt, fish and farm at a family/community sustenance level.  A small dairy and beef cattle herd, chickens, ducks, etc.

9. Surround yourself with like minded people – be prepared to be looked at as a survivalist nut job loon by the sheep in society who just know that the goverment will do something to make it all better.  I’d prepare for an event that doesn’t take place than be caught unprepared when something that I hoped wouldn’t happen does.

10. Take it to the extreme of going off grid completely – active and passive solar, wind, on acreage that can support 2, 8 and 9 above.  Figure out where in the country serves you best.  Front Range Colorado is among the leading geographic areas with the most sunny days per year so solar is a good option there, but you do constrain yourself somewhat as far as farming goes.

11. Did I mention zero your debt?

While this might seem extreme, whatever does happen will likely be different from what we expect.   "The Fourth Turning" by William Strauss and Neil Howe is a fantastic book on human social cycles and crises – the takeaway for me is that whatever happens coming out of the crises is huge and transformational.

 Good luck – welcome aboard and see you around the site.

  • Wed, Jan 14, 2009 - 08:37pm

    #5
    peter445

    peter445

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    Re: What the heck do I invest in?

Thanks, Cat.

 Yeah, I overstated the fact that I’ve read "everything" on this site.  Good point.  I guess I meant I’ve watched the CC twice and read the forums and digests daily.

Pete

  • Wed, Jan 14, 2009 - 08:46pm

    #6
    peter445

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    Re: What the heck do I invest in?

Wow!  Thanks for your (and everyone else’s) thoughtful response!  As a newbie, I completely appreciate it!

Pete

  • Wed, Jan 14, 2009 - 10:02pm

    #7
    bearing01

    bearing01

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    Re: What the heck do I invest in?

Maybe learn to light a fire by rubbing two sticks or with a knife & flint.  Maybe buy a bicycle and some extra tires & inner tubes.

 Don’t invest any money in stocks that you will need in the next 5 years.   Make sure you have savings besides your investments.

I like gold mining companies, agriculture companies  and oil companies.  From the reports it sounds like Oil can be down around this price for a few more months.  By the end of the year it is expected to go back to the $60 range.  I believe in Peak oil and that I expect oil to go back above $200.  If you buy oil stocks now you will have to wait it out.  I like the Canadian Energy trusts that pay 15% to 20% in annual distributions – that pay me to own it.  I see them as a store of value for my wealth that is not denominated in dollars.  Also the Agriculture co’s I like are fertilizer companies like Agrium, Potash and Mosaic.  As for gold & silver mining, there are several good companies out there also. 

When buying any stocks in this environment I suggest you focus on making sure they have low long term debt and healthy cash flow.  Also, anticipate this market may tank again and take out the November low.  That would be a good time to buy, however the market may trade sideways for months to come after that.  That’s why it’s good to own high paying dividen stocks.  The only thing that will make this market rise would be money supply inflation or anticipation that Obama’s stimulus may work. There ‘s no guarantee that the money will flow into stocks first.  Therefore, don’t expect stocks to be a hedge against  inflation.  Also, when the traders realize that all this stimulus by new money creation and debt does not revive the economy the stocks will tank once again.

When investing in today’s market keep in mind that everything that the gov’t and Fed Reserve are doing today to help end this recession are exactly what you should not do to quickly end and recover from a recession.  I expect this recession to last several years because of the gov’t intervention.  Therefore you should focus on companies that produce necessities.  Also, the commodities haven’t been compromized with gov’t stimulus and bailout (except for credit creation) and therefore I believe they may have a healthy recovery someday.

  • Wed, Jan 14, 2009 - 10:08pm

    #8

    Dogs_In_A_Pile

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    Re: What the heck do I invest in?

bearing –

Nice post.  I offer the following observation and caution.  Be careful how much of your portfolio goes into "companies" – especially gold, oil, ag and other commodities.  If the crisis is very bad (subjective) there is a risk that those companies could be nationalized.  If so, your investments in them are poof, gone, you are not a winner – thanks for playing, next.

If it doesn’t come to that, then your strategies are on the mark with zero down-range/cross-range error.

  • Wed, Jan 14, 2009 - 10:11pm

    #9
    Brainless

    Brainless

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    Re: What the heck do I invest in?

I read the post and comments and i read many times ‘zero your debts’, ‘pay your debts’, etc.

When you expect inflation in the near future and possible high inflation would it not be better to just keep up with your debt and pay it down later with ‘cheaper’ money. At least when your interest rate is fixed, otherwise a rise in that rate will kill you.

 

 

  • Wed, Jan 14, 2009 - 10:21pm

    #10

    Dogs_In_A_Pile

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    Re: What the heck do I invest in?

Brainless –

For a short answer – Umm, no.

What happens when inflation becomes hyperinflation?  Who cares that your minimum VISA payment is $35 when a gallon of milk or loaf of bread costs $100 or $1000.  Do you think your paycheck is going to be inflated too?  Doubtful.

You’re posturing a roll of the dice I’m not willing to play.  I think zero debt is the safest approach.  As was mentioned in a recent post, there are only three options regarding debt:

1.  Pay it off.

2.  Default

3.  Print money and inflate it away.

2 out of 3 in this case is bad (unless you are a second baseman – .667 gets you into Cooperstown)

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