Are any of you investors? Where's a smart place to invest your money?
In my opinion consider REITS that invest in rental real estate if you must invest now.
Hedge funds (unregulated mutual funds) are for wealthy investors and are difficult to access and assess.
However, unlike regulated mutual funds they can take short positions. ie: they make money if stock prices go down.
I believe there are some mutual funds that invest in multiple hedge funds to diversify risk.
Better yet, invest directly in rental real estate.
Inflation will mean that the property will appreciate even as the low mortgage rate will be fixed.
There will be more renters in the future as opposed to buyers.
If all hell breaks loose your tenant(s) can barter for the rent.
Some analysts are suggesting companies that will benefit from getting rid of their health plans because of Obamacare, but other than that I see a lot of appreciation of stock prices with no underlying fundamentals to support them.
Commodity stocks might do well in an inflationary period but can be extremely volatile.
Companies are investing in land and infrastructure.
Stocks are at all time highs as the fed buys up debt with fiat dollars.
Interest rates are at all time lows so bond yields will go down significantly once the artificially low rates begin to climb.
Inflation is taking place now even though the government has removed key components to hide the increases.
This means that whatever earning you get from rising rates will be offset by inflation.
In addition, as happened in Greece, if all hell breaks loose banks might freeze or limit withdrawals and the government might take money directly from individual accounts.
If you have any debt...pay it down because the savings are in effect a safe return equal to the interest rate, and again, if all hell breaks loose you will reduce your overall obligations.
Unfunded liabilities are of Star War proportions.
The United States must continue to borrow in order to make the promised payments.
At some point lenders will show some tough love as they did in Europe.
How will those who depend on government react if their check is reduced or does not arrive?
Look for RT videos on YouTube and you will have your answer.
Look for companies that might benefit.
A less traditional consideration is to invest in tangible property.
Something that has great value but takes up little space, is easily sold, is unregulated, does not spoil or degrade, does not become obsolete or go out of style.
Copper tubing would be an example.
Tangle property and the appreciation of it would not be reported on your tax return but you would be required to declare the gains of any future sales.
I'll follow this post with a post I made at The Library that I think you might find instructive.
Good luck!
