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Old 01-18-2013, 06:13 PM   #41
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An open question for those who think good times are here again and that the op need not worry?
Can you give us a list of the posters who you believe are saying this?
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Old 01-18-2013, 06:19 PM   #42
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An open question for those who think good times are here again and that the op need not worry?

What would happen to the S&P 500 and government bond markets if Ben Bernanke decided to stop quantitative easing and sell the two trillion dollars of government and agency securities that he has purchased over the past 4 years?
My question is what do you think would happen and how do you hedge against it? Unless I can think of a viable option that will save me from the end of the US economy, I will have to use what has worked in the past. It may not be right, but its all I have.

NMF
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Old 01-18-2013, 06:42 PM   #43
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Can you give us a list of the posters who you believe are saying this?
Good times are here again to me = 3% after inflation return.
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Old 01-18-2013, 06:45 PM   #44
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Quote:
Originally Posted by AndrewJackson View Post
An open question for those who think good times are here again and that the op need not worry?

What would happen to the S&P 500 and government bond markets if Ben Bernanke decided to stop quantitative easing and sell the two trillion dollars of government and agency securities that he has purchased over the past 4 years?
What you are asking is to give an opinion that is ahead of the bond market predictions which are going on as I type this ... second by second. In other words, all the predictions are incorporated in bond and stock prices now.

As new info comes up in future time the markets will tell us. I for one am not going to try to outguess the market pricing mechanism. One could try to follow the pricing trend which is a different thing. But if there is a sudden big discontinuity in the news all trend following is not going to work.
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Old 01-18-2013, 06:49 PM   #45
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My question is what do you think would happen and how do you hedge against it? Unless I can think of a viable option that will save me from the end of the US economy, I will have to use what has worked in the past. It may not be right, but its all I have.

NMF
Well for one, I refuse to invest in government/corporate bonds where (1.) the yield is abysmally low (2.) Central Bankers are Printing (3.) federal/state/local deficit spending is massively increasing.
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Old 01-18-2013, 06:53 PM   #46
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What you are asking is to give an opinion that is ahead of the bond market predictions which are going on as I type this ... second by second. In other words, all the predictions are incorporated in bond and stock prices now.
This gets to the basis of what I think needs to be discussed. The financial markets are fundamentally broken now because central banks have interrupted the pricing mechanism with false supply/demand. Market participants are not basing the pricing off of true fundamentals but rather the size and scope of central bank interventions.

Lets just put it this way. Inflation could be running 15-20 percent a year and 10 year treasury bonds could be yielding under a 100 basis points. How? The federal reserve can print money and buy the bonds regardless of real economics. This is what is happening all over the world and repercussions for such behavior will have to take place.
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Old 01-18-2013, 07:01 PM   #47
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Well for one, I refuse to invest in government/corporate bonds where (1.) the yield is abysmally low (2.) Central Bankers are Printing (3.) federal/state/local deficit spending is massively increasing.
The question remains, what does one invest in to survive the pending implosion. By the way, I do not doubt it can happen with the money printing going on.

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Old 01-18-2013, 07:07 PM   #48
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The question remains, what does one invest in to survive the pending implosion. By the way, I do not doubt it can happen with the money printing going on.

NMF
I think the biggest issue, with all the fiscal/monetary insanity, is that one needs to preserve and grow their puchasing power. The best way to do this, would be to avoid most fixed income and purchase stock in businesses that can easily pass on soaring cost to customers (inelastic demand).
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Old 01-18-2013, 07:09 PM   #49
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At the level of projected Certain Doom, I suggest buying a used missle silo, to be filled with guns, ammo, preserved food, water, medical supply kits, etc. Get a couple of diesel-electric generators, and several years worth of stabilized fuel.

Be Prepared!

In unrelated news, I plan on taking a nice round the world cruise, funded by my new Internet store that sells preserved foodstuffs, medical supply kits, and diesel-electric generators.
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Old 01-18-2013, 07:14 PM   #50
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At the level of projected Certain Doom, I suggest buying a used missle silo, to be filled with guns, ammo, preserved food, water, medical supply kits, etc. Get a couple of diesel-electric generators, and several years worth of stabilized fuel.
I thought that was what everyone meant by have a diversified portfolio.
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Old 01-18-2013, 07:15 PM   #51
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Oh, and I don't believe in 'unprecedented'. Unpleasant, yes, but I doubt I'll see a truly unprecedented, never before known, event. Economies go through rough patches, currencies or whole countries can collapse, and societies can engage in what amounts to a suicide pact. That has all happened before, and it will all happen again.

I just keep a diversified portfolio. And this missile silo filled with...
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Old 01-18-2013, 07:16 PM   #52
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Can you give us a list of the posters who you believe are saying this?
Me! I'm totally converted!

Ha
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Old 01-18-2013, 07:19 PM   #53
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In unrelated news, I plan on taking a nice round the world cruise, funded by my new Internet store that sells preserved foodstuffs, medical supply kits, and diesel-electric generators.
I'm headed in the same direction, but through a new Vanguard Sector ETF invested in industries manufacturing preserved foodstuffs, medical supply kits and diesel-electric generators. Ticker: VDOOM
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Old 01-18-2013, 07:20 PM   #54
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Me! I'm totally converted!


See if the mods will change your user name to PollyAnna...
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Old 01-18-2013, 07:21 PM   #55
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I'm headed in the same direction, but through a new Vanguard Sector ETF invested in industries manufacturing preserved foodstuffs, medical supply kits and diesel-electric generators. Ticker: VDOOM
Most Depressing Prospectus... EVER!
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Old 01-18-2013, 07:21 PM   #56
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I'm headed in the same direction, but through a new Vanguard Sector ETF invested in industries manufacturing preserved foodstuffs, medical supply kits and diesel-electric generators. Ticker: VDOOM
lol. In all seriousness, though, any prudent household should have the resources to comfortably survive at least a month to 6 weeks without all utilities and normal day to day conveniences like gas stations and walmart.
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Old 01-18-2013, 07:29 PM   #57
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...yawn...
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Old 01-18-2013, 07:40 PM   #58
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Although I usually enjoy reading your posts, I find your message below disrespectful to those of us who have been participating here.
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...yawn...
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Old 01-18-2013, 07:51 PM   #59
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See if the mods will change your user name to PollyAnna...
I might prefer a more masculine image. How about El Toro?

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Old 01-18-2013, 08:03 PM   #60
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lol. In all seriousness, though, any prudent household should have the resources to comfortably survive at least a month to 6 weeks without all utilities and normal day to day conveniences like gas stations and walmart.
Were you around in the 1970's? We had a lot of people saying a lot of weird things back then and into the 1980's through a great equity bull market. There was Ruff Times for instance: Howard Ruff - Wikipedia, the free encyclopedia

I'd recommend not to become a victim of some of these weird thinkers. Not that anyone here is doing this.
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