Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Re: recession or inflation,gearing portfolio
Old 06-03-2006, 07:41 PM   #21
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,617
Re: recession or inflation,gearing portfolio

Quote:
Originally Posted by brewer12345
Go look at the history.* IIRC, commodities did quite well in the bad old days of the 1970s.
I knew a guy in 1979 whose entire portfolio was in gold, diamonds, gold coins, and collectibles.

He didn't figure out what to do until September 1987...
__________________

__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: recession or inflation,gearing portfolio
Old 06-03-2006, 07:54 PM   #22
Thinks s/he gets paid by the post
 
Join Date: Apr 2006
Posts: 1,487
Re: recession or inflation,gearing portfolio

Quote:
Go look at the history.
indeed! is this part chicken 'n egg?* the econ slump of the 70's being in large part a result of increased energy prices?
__________________

__________________
d is offline   Reply With Quote
Re: recession or inflation,gearing portfolio
Old 06-03-2006, 10:15 PM   #23
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Re: recession or inflation,gearing portfolio

Quote:
Originally Posted by Nords
No, that was caused by the reports of TH's car purchases this year (so far)...
I'm done for quite a while. Sold my old gas guzzler truck today for $2500 more than the dealer offered me in trade. First guy that looked at it, so no hassle. Quite a win/win.

And I dont have to put a whole rack of keys on hooks in my kitchen anymore! I can have just one ring in my pocket now and they all fit!
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Re: recession or inflation,gearing portfolio
Old 06-03-2006, 10:43 PM   #24
Thinks s/he gets paid by the post
Leonidas's Avatar
 
Join Date: May 2006
Location: Where the stars at night are big and bright
Posts: 2,847
Re: recession or inflation,gearing portfolio

Quote:
Originally Posted by d
indeed! is this part chicken 'n egg? the econ slump of the 70's being in large part a result of increased energy prices?
It was a lot more complicated than that, wasn’t it?

Our economy was starting to suck before the ‘73 embargo. Under Tricky Dick Nixon the rate of inflation and unemployment doubled in a year before OPEC (or, as my econ professor called them, the O’PECkers) shut off the taps. Our energy costs tripled overnight and nobody knew how to stop the bleeding. It was like tossing hand grenades into a burning house, it was burning down anyway but was suddenly transformed into a conflagration that was spectacular.

To approximate the effect, imagine going to buy gas next week and seeing regular selling for $8.50 a gallon.
__________________
There is no pleasure in having nothing to do; the fun is having lots to do and not doing it. - Andrew Jackson
Leonidas is offline   Reply With Quote
Re: recession or inflation,gearing portfolio
Old 06-04-2006, 03:22 AM   #25
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2005
Posts: 5,408
Re: recession or inflation,gearing portfolio

im not to keen on tips..the way the cpi indexes are manipulated that are linked to the increases im not convinced these will be a good investment..you might get a spike up for 6 months like we just had happen but then right back down again...im convinced these will always lag behind what they really should be,,,,,
__________________
mathjak107 is offline   Reply With Quote
Re: recession or inflation,gearing portfolio
Old 06-04-2006, 09:07 AM   #26
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Re: recession or inflation,gearing portfolio

Quote:
Originally Posted by Leonidas
It was a lot more complicated than that, wasn’t it?

Our economy was starting to suck before the ‘73 embargo.* Under Tricky Dick Nixon the rate of inflation and unemployment doubled in a year before OPEC (or, as my econ professor called them, the O’PECkers) shut off the taps.* Our energy costs tripled overnight and nobody knew how to stop the bleeding.* It was like tossing hand grenades into a burning house, it was burning down anyway but was suddenly transformed into a conflagration that was spectacular.

To approximate the effect, imagine going to buy gas next week and seeing regular selling for $8.50 a gallon.*
I think that's about right. Kennedy and his successors decided to listen to the advisors saying that guns AND butter was possible (rather than guns OR butter), so they spent money on lots of domestic stuff and a prolonged war. The eventual result was an ugly inflationary environment. Sounds awfully familiar to today, except that some of the domestic spending has been replaced with tax cuts.
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Re: recession or inflation,gearing portfolio
Old 06-04-2006, 09:17 AM   #27
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2005
Posts: 5,408
Re: recession or inflation,gearing portfolio

Quote:
Originally Posted by brewer12345
I think that's about right.* Kennedy and his successors decided to listen to the advisors saying that guns AND butter was possible (rather than guns OR butter), so they spent money on lots of domestic stuff and a prolonged war.* The eventual result was an ugly inflationary environment.* Sounds awfully familiar to today, except that some of the domestic spending has been replaced with tax cuts.
good point on the tax cuts
__________________

__________________
mathjak107 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
SWR - Amortize your portfolio RgrGd FIRE and Money 5 03-28-2007 11:29 AM
High Dividend Portfolio vs Portfolio Diversified Across Asset Classes ScaredtoQuit FIRE and Money 36 01-12-2007 01:24 PM
Another perspective on a high-equity portfolio Nords FIRE and Money 98 02-13-2006 12:37 PM
Conservative distribution phase portfolio peteyperson FIRE and Money 13 03-22-2005 07:48 AM
Volatility in your Portfolio ESRBob FIRE and Money 5 03-03-2005 10:09 AM

 

 
All times are GMT -6. The time now is 04:31 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.