As an investor, my concern is what do I do with my money. If the Fed insists on inflating the currency, what do I do?

By Daniel at 15 December, 2009, 12:12 am


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It may be correct to say that the conditions we are under do not lead to business growth, and therefore the growth in the value of stocks will probably be negative. But so what? Under the same conditions, keeping money in currency or bonds or the mattress will be disastrous to ones net worth.

So if I cannot hold cash in US Treasuries or dollar denominated bonds due to inflation risks, and the Euro is risky, and the yen is risky too, and the yuan is tied by the Chinese authorities to the dollar, and I cannot afford to keep an oil tanker out in the bay in front of my house, and I don’t have a vault big enough for all the silver, and I don’t want to stand guard over bullion 24×7, what do I do?

It seems academically correct to say, stocks are a bad bet. But there is not much left to do other than become a hermit or join a militia someplace. So I prefer to buy stocks in what I regard as an intelligent manner.

BTW, I’ve been doing so quite successfully since 1996. Right now I have my stash in gold & silver miners, oil companies, Canadian & Aussie dollars, Chinese yuan and some Canadian utilities for cash flow. Plus some alternative energy stocks for popcorn & entertainment. I’m not sure what else to do.

- Tim

Seems like a good time to keep a nimble outlook.


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