written by reader Plan for economic crash

By Anonymous Questions, May 13, 2014

Many economic experts are predicting another economic crash like or worse than we saw in the 1970s with ultra high interest and high inflation. That is no surprise with the government spending more than they have for years. I would not be surprised there is no gold in Ft. Knox either.

I would like to request the stock gumshoe plan on how to protect our wealth through these times? I would imagine all your members have the same question.

What changes is the gumshoe making to protect his fortune?

Is the US Dollar doomed and if so what can we do about that? Will there be a new world currency that is solid?
Thanks.

This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.

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investor101
Irregular
May 13, 2014 5:46 pm

Thanks….I think you have expressed what is weighing heavy on people’s mind. I seriously don’t know which way to go. I have quite a few US Savings I Bonds I bought for my sons in the 90’s, sitting in the safe deposit box and have wondered if I need to go ahead and cash them. I certainly can’t put everything in gold, have a stock account etc… I sure do hope our friends here will express their thoughts. I will heed that more than the paid for newsletters!

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Travis Johnson, Stock Gumshoe
May 14, 2014 8:46 pm
Reply to  investor101

I bonds from the 1990s might be an awfully compelling hold if you’re worried about inflation — they would probably still have a substantial base yield plus the variable inflation protection, check with TreasuryDirect to see what they’re earning. I personally buy I bonds and max out on those before adding to my savings accounts, and I often buy foreign currency CDs through Everbank for diversification … Though I don’t own any right now. The third leg of my savings strategy to diversify is periodic
Small purchases of precious metals. Foreign currency CDs, I bonds, and precious metals are not intended to make me any money, they’re intended to preserve purchasing power of savings. To actually grow my investment portfolio I focus on companies that can compound earnings and grow over time, with diversification across countries and sectors.

I find it useful to think about those two baskets as separate — I want to protect the purchasing power of my savings as we’ll as I can, and I want to grow my investments. And perhaps most importantly, diversify in a way that allows for the fact that whatever you think is inevitable about the path the global economy will take (and what the best-marketed pundit thinks) is probably wrong in lots of ways. Prepare for a variety of possible outcomes rather than worrying about betting your future on predictions that are well-marketed and frightening.

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George
Member
May 14, 2014 2:19 am

I am conserned about any accet backed by the US dollar. This currency could inflate very fast when people loose confidence in the USD. The traditional way to reduce the impact is precious metals, investments not in USD, and land to mention a few. Anyone have any better ways to hedge against a big USD inflation run?

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euclid
Member
May 14, 2014 3:31 pm
Reply to  George

I too am concerned about any asset backed by the dollar and after reading the 3 Aftershock books by Wiedemer et al I am in the process of shedding the dollar where I can: PM, of course, Canadian and Australian backed equities, currencies (see EverBank), take look at currency play XCRD by Deutsche Bank, Jim Rogers says buy farm land, some say real estate but Wiedemer says it will crash again but it still might be better than dollar. The more extreme approach would be to leave the US. I hope others with good ideas let us hear about them.. If we get out of the dollar now it may be early but that is better than late.

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Travis Johnson, Stock Gumshoe
May 14, 2014 3:50 pm