[extropy-chat] 'a process of non-thinking called faith' 2 (2)

[Eugen Leitl]

On Sun, Nov 26, 2006 at 08:33:00AM +0000, BillK wrote:

> Concerning personal finances, if you expect a period of high inflation
> and collapsing money, then it makes sense to borrow as much money as

Classical mix is 1/3rd Ag/Au/Pt/Pd bullion (1 kg bars, not dead tree),
1/3rd real estate (make sure you're not in a bubble -- not an option
for most in the U.S.), 1/3rd stock (energy and natural resources in
general). This assumes you're liquid, going into debt to purchase
above is probably not a good idea.

(Caveat: I'm just regurgitated advice from others I consider sensible.
YMMV, if you disagree, I would like to know why).

> possible and buy real assets. Rampant inflation wipes out monetary
> debts as well as monetary assets. (Yes, interest rates will rise, but
> you are making interest payments in devaluing money).  After the
> holocaust you will still have your land, property, diamonds, gold
> bars, whatever.
> 
> However, current news reports indicate that the slowdown
> (readjustment?) in the US property market is not expected to cause an
> economic collapse.

Have you seen any prior Black Friday/Monday/$weekday announcements in
the press?  

> (But then they would say that, wouldn't they?).  ;)

If you're doing what the press says, and what the bulk of investors
does, you'll lose long-term. Whomever you listen to, consider Taleb's
advice.

-- 
Eugen* Leitl <a href="http://leitl.org">leitl</a> http://leitl.org
______________________________________________________________
ICBM: 48.07100, 11.36820            http://www.ativel.com
8B29F6BE: 099D 78BA 2FD3 B014 B08A  7779 75B0 2443 8B29 F6BE
-------------- next part --------------
A non-text attachment was scrubbed...
Name: signature.asc
Type: application/pgp-signature
Size: 191 bytes
Desc: Digital signature
URL: <http://lists.extropy.org/pipermail/extropy-chat/attachments/20061126/2c09aee7/attachment.bin>