How do you invest for a depression?
Question: If you think the economy is totally headed toward the shitter, as I am beginning to believe. Where do you invest? Don’t say Gold or a mattress.
For about the last 18 months the Tech industry as hit the skids HARD. As time rolls on we’re seeing other industries being hit which is normal, but absolutely no turn up in Tech. By definition Tech has already been in a depression for months. You can’t take one segment of the economy away without it affecting the rest, it’s just a matter of time before things get progressively worse.
As I figure it, if Greeny keeps cutting interest rates, plus the tax cut (no matter how meager) will swiftly lead to inflation. With inflation on the horizon, the rate cuts stop (or even reverse) and what’s left? More and more people out of work in several industries and we begin the downward spiral. And the fed’s power has been reduced to nothing more that an annoyance of a flee on a dogs back.
Am I way out in left field? I don’t know that much about economics, but I sure wish I’d a paid a bit more attention in econ101.
Answer: John Walton from Waltons Mountain did pretty good with his saw mill . I think there neigbor had a still that made a “special recipe”. Could be something to look at. I figured with the education , technology we have today our society woud never end up asking this question about a depression. But when you live in a society of greed , liberalism and welfare , what do yuo expect ? All those bad debt loans, phony bank ruptcies for credit card dept , defaults on student loans, no morals , no ethics , no integrity this country is going only one way and that is down down… If you really think a depression is near and inflation is on the horizon, you need to get into Series I US Savings Bonds. They are designed to stay ahead of inflation. A 5-year 5.5% CD will only earn 5.5% even if inflation jumps to 10%, whereas the Series I bond is adjusted every 6 months based on the Consumer Price Index. It will earn about 14% if inflation rises to 10%.
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