the gold DOW ratio!

a friend of mine says a good strategy is to divide your money in 4. A quarter in bonds, a quarter in stocks, a quarter in preceous metals and the last quarter in real estate

 

PS....avoid stock tips.

 

Not in my opinion.

There is wide spread talk of a recession, Europe is a mess with huge debt problems and banks in big trouble, inflation is rising, government spending is virtually out-of-control and unemployment and residential real estate refuse to improve.

The West's macro-economic fundamentals suck...and continue to get worse.

If people think stocks are at low levels now - wait a while. I guarantee you they will be a lot lower within 18-24 months...if not sooner.


But...I AM NO EXPERT.

 

lol especially from barbers

 

Most people would say that a diversified asset portfolio is a wise choice. The ratio of fixed return investments like bonds depends upon you investment time frame and whether you will need the money. There is nothing wrong with buying gold but I would be hesitant to put a quarter of my assets into gold right now if you don't already have it invested because it's price is relatively high. But then I don't speculate in commodities. Having said that, in hindsight, I would have bought gold back in 2003.

Of course, with hindsight, I'd be a billionaire right now.

 

yup, it would be great to have a crystal ball

 

yeah the crisis in europe has me worried too

 

I was always a bottom fisher. I would wait until everyone was in a panic...then I would buy...when everyone was bullish I would sell.


I bought my house and land, my motorcycle, my beatup pickup, my van, fencing, and a couple of nice vacations...now I have little disposable income...but everything is paid for...in cash.

I am now a farmer...land rich...money poor.

 

I believe the term is contrarian is it not? and yes me too as I bought my house during the last downturn and saved 100,000 dollars

 

watch out for bonds as there could be a default especially in municipals!

 

I thought that since the US government can print money there was no chance of default?

 

Google Germany in the 1920s...it took a grocery cart full of money to buy a loaf of bread. If no one trusts your fiat money it is worthless.

I have about $40,000 marks from back then....worth about $2.50 now.

 

but there are people on this site that think if you print away the debt then the US will be debt free and all will be rosey again......right landrusave us?

 

I actually have a billion mark note......not worth the paper its written on

 

You could probably get a couple bucks for it, people like to collect those things.

 

as a collectors item perhaps, but as money it has no value!

 

I have actually never seen one of those old marks

 

some of them are only printed on one side.....I guess they needed to put them into circulation very quickly LOL

 

I wonder is that will happen to american dollars when it hits the fan LOL?

 

it will make interesting wall paper I guess LOL

 

and cheaper too

 

so whats the ratio now?

 

about 6.5 to one ( more or less)

 

I just wonder if they will meet at 6,000 or at 20,000 ?

 

well...thats the million dollar question!