Comments on: The new reality – debt, deficits and sovereign crises http://www.moneyhoneyblog.com/the-new-reality-debt-deficits-and-sovereign-crises/ Aspiring to Spark an Informed Debate on Stock Market Investing, Trading, Financial Spread Betting, World Finance and Economy Thu, 02 Sep 2010 01:27:04 +0100 http://wordpress.org/?v=2.8.6 hourly 1 By: Petra http://www.moneyhoneyblog.com/the-new-reality-debt-deficits-and-sovereign-crises/comment-page-1/#comment-818 Petra Sat, 27 Feb 2010 05:32:15 +0000 http://www.moneyhoneyblog.com/?p=508#comment-818 Well, nothing is ideal, but some things better than others. I'd stay away from sovereign debt; cash may not be a great idea either. Leaves commodities (agricultural; precious metals perhaps, though not cheap), equities, real estate... (As for equities, buying an index will unlikely be a good move for 2010, but some companies and sectors will do better than others.) Well, nothing is ideal, but some things better than others. I’d stay away from sovereign debt; cash may not be a great idea either. Leaves commodities (agricultural; precious metals perhaps, though not cheap), equities, real estate… (As for equities, buying an index will unlikely be a good move for 2010, but some companies and sectors will do better than others.)

]]> By: goldstandard http://www.moneyhoneyblog.com/the-new-reality-debt-deficits-and-sovereign-crises/comment-page-1/#comment-774 goldstandard Tue, 23 Feb 2010 09:08:22 +0000 http://www.moneyhoneyblog.com/?p=508#comment-774 Hallo Petra, this is a most comprehensive summary of what is going on. I have to agree. And my question is ...... what are the consequences for intelligent investor? It is not recomended to invest in fixed income, of course. It is, however, not recommended to rely on equities too much, either. (And, moreover, today - they are quite expensive). (It is a common understanding now, that inflation impacts negatively also equity investors. See for instance: Warren E. Buffett, FORTUNE May 1977: How Inflation Swindles the Equity Investor.) As Marc Faber pointed out several times, the tricky thing about inflation is that it manifests itself in an inpredictable way... The money governments will print can go to gold, but can go real estate, either. Or, they can go to equities. or, they can go to food(unlikely). Hallo Petra, this is a most comprehensive summary of what is going on. I have to agree. And my question is …… what are the consequences for intelligent investor?

It is not recomended to invest in fixed income, of course. It is, however, not recommended to rely on equities too much, either. (And, moreover, today – they are quite expensive). (It is a common understanding now, that inflation impacts negatively also equity investors. See for instance: Warren E. Buffett, FORTUNE May 1977: How Inflation Swindles the Equity Investor.)

As Marc Faber pointed out several times, the tricky thing about inflation is that it manifests itself in an inpredictable way… The money governments will print can go to gold, but can go real estate, either. Or, they can go to equities. or, they can go to food(unlikely).

]]>