godoftrading
Fun Poster
- Messages
- 131
- Joined
- Jan 3, 2008
- Messages
- 131
- Reaction score
- 0
- Points
- 10
1. Buy commodities. Especially commodities that have a limited supply. That is gold, silver, platinum, oil. The ag commodities will be strong also, but less so imo and also the extreme contango effects of the grains puts a severe strain on longs over the long term.
2. Do not be quick to short the stock market. Hyperinflation lifts all assets, including crappy ones like US stocks. But they will vastly underperform the commodities and a short US stock portfolio can act as a nice hedge for a long commodities portfolio.
3. Do not buy bonds! They are the worst investment in such an environment, especially when the government tries to snow over the public with fraudulent CPI data which vastly underestimates inflation.
4. Long the Asian currencies versus the dollar. The US is turning to an Argentina and Zimbabwe like policy of monetary expansion to keep the system afloat, it all trickles down to a weaker dollar. The Euro is richly valued already, so the Asian currencies are the better refuges for this dollar avoiding money.
5. Leverage. Refi. Get as many loans under 8% as you can. Put that money to work in commodities and get a much better return than 8%. Borrow like there is no tomorrow! The dollars of tomorrow will be worth much less than the dollars of today.
2. Do not be quick to short the stock market. Hyperinflation lifts all assets, including crappy ones like US stocks. But they will vastly underperform the commodities and a short US stock portfolio can act as a nice hedge for a long commodities portfolio.
3. Do not buy bonds! They are the worst investment in such an environment, especially when the government tries to snow over the public with fraudulent CPI data which vastly underestimates inflation.
4. Long the Asian currencies versus the dollar. The US is turning to an Argentina and Zimbabwe like policy of monetary expansion to keep the system afloat, it all trickles down to a weaker dollar. The Euro is richly valued already, so the Asian currencies are the better refuges for this dollar avoiding money.
5. Leverage. Refi. Get as many loans under 8% as you can. Put that money to work in commodities and get a much better return than 8%. Borrow like there is no tomorrow! The dollars of tomorrow will be worth much less than the dollars of today.
