For those out there who thinks this coming financial and economic turmoil is just a walk in a park, better starts to think again, whatever happened in the US currently it is just the beginning of an era of great unpredictability in the world economy health and financial systems capability to right this storms of stagflation( combination of high inflation and stagnant economy growth ). As the writer in The Daily Reckoning wrote today..........................
Avoid U.S. stocks. The U.S. market is in relative decline. And it's just going to get worse from here…
Avoid U.S. bonds and the U.S. dollar too - they're both too dangerous. Besides there's no margin of safety. If everything goes right, you won't earn very much. If it goes wrong, you'll be wiped out.
Buy gold. We don't know what direction it is going, but it isn't going away. And if the world's monetary system is troubled - either by inflation or deflation - gold will be good protection.
Consider it an insurance policy. You pay for fire insurance on your house. If your house doesn't burn down you still don't regret having paid for fire insurance. If everything goes right in the world economy, gold will probably go down further. But if anything goes wrong - and our guess is that something will go wrong - you'll be happy to have some Krugerrands( gold coins ) in your pocket. Except from The Daily Reckoning.
Well go and buy your fire insurance/gold now!
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