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Originally Posted by recycled sixtie

The OP asked for opinions on how to invest but did not ask for an economic forecast.
Try and put your feet in his shoes and establish what you would do if you were him.
Where does he put his money?

You have to know whence the ground upon which you walk to know what shoes to wear hence forth. A pair of Gucci loafers is not going to to keep you in good stead when traversing through the Grand Canyon.

Pshaw, away with you Oaf....

When Joe Kennedy heard Cab drivers and Shoe Shine Boys talking about investing in the Market in 29 he got the fk out...he had saved his fortune for a few months later the market came crashing down like a ton of bricks. It never really recovered until the Nifty Fifty 1960's. Then came another long dormancy until the 1980's and the Reagan revival of sunniness where business became lean and mean..which with the END of the Cold War REVALUATION of assets paid dividends in the 90's.. Entering upon the New Millennium the Equity markets crashed and burned with the deflation OF THE DOT COM BUBBLE. The Equity market from 2000 through 2012 was a stagnant market with a very thin return. During this period the economy of the USA was LACKLUSTER where RE construction accounted for 16% of the US economy. That expansion of credit fueled the economy while forming the RE Bubble which blew up in 2008. The NEW BUBBLE that has formed is bigger and more inclusive than any of the previous bubbles as it is a Sovereign Debt Bubble. Equities is only a symptom of that Bubble as it is the vehicle with which the cash flows into. Pension funds need an 8% return to stay solvent.

Going forward there is LITTLE CERTAINTY with the attendant increasing risk that any of the traditional and well worn paths to wealth accruing is viable any longer. The very institutions that people rely upon have been undermined. In this environment one has to be nimble and quick with a continuing awareness of the shifting sands AND knowing what it means. If you do not have knowledge of a particular market DO NOT INVEST in Fiber Optics stock. You are at the very least a chump, a rube a sucker. The best course of action is to educate yourself and that takes time and constant awareness. Meanwhile build a cash position, but beware even the Dollar STANDARD valuation of a Money Market fund HAS BEEN BROKEN. FDIC is essentially worthless in any run on the banks. Short term TREASURIES is the best bet as if the US govt goes than nothing will be left standing anyway. If you ar bound and determined to invest in Equities, look to those that have NOT MISSED PAYING A DIVIDEND for decades (like Exxon, Chevron, BP etc). They may not be glamorous nor stellar performers but you are buying an income stream with stability and capital appreciation. It is better to buy your own shares than to invest in Mutual Funds especially BOND FUNDS. Principle is at risk in BOND FUNDS which you many never be able to recover if interest rates climb dramatically.

To become an astute Equities investor one has to put the effort in. Being a successful Equities trader is based upon acquiring knowledge of how markets work and applying that knowledge. Day trading is better left to people who are degenerate Gamblers who belong in GA. Stock Brokers are glorified used car salesmen who only tout the Company/Partay line of what to try and sell the Rubes (you) and whose knowledge may range from less than zero to being playas. You will not get into seeing a Playa as a walk in. Buyer beware.

If you are smart start watching the SP 500 and Nasdq...along with the 10 year Treasury. Start tuning into CNBC, Blomberg or FAUX Business news as your new home...you after time will get a pulse. If you are not willing to do that just keep watching football and stay the fk out of Equities and Bonds.

BTW CNBC in the morning used to quote me.

In this economic and political environment one has to also invest in other asset classes as a diversification which acts as a hedge. One can not COUNT on the INSTITUTIONS anymore as they have been undermined . To that end Silver, Gold and a plot of land to provide for your own sustenance might be prudent. Silver and Gold only buys time. Any shake out is going to be forever for anyone who is alive today. Paul Ryan has said, "There will be a crisis." So it is not an IF but a when situation.