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Edited on Wed Dec-03-08 09:29 AM by Kurt_and_Hunter
There is currently no performing asset class.
If serious deflation sets in then cash will actually be a growth investment because the value of cash increases as prices deflate, but as things stand right now cash is merely preserving equity, not making big gains.
In an environment where stocks, commodities and real estate threaten further declines and cash is merely flat there is nowhere for investment money to go. The flight to safety (and possibility of deflation) has driven up all non-risky bonds so the yields are pitiful.
Meanwhile every central bank is printing money around the clock, threatening inflation down the road. (If we're lucky!)
And, of course, India and Pakistan are in a dynamic more ripe for nuclear exchange than the US and USSR were since 1962.
As someone who has always laughed at gold investors as crazies, I gotta admit that gold is probably the one hot asset of 2009.
If golds reaches $2000/ounce I can probably replace some of my aging gold dental work with new porcelain crowns, covering the cost entirely by selling the old gold.
See, it's not such a bad economy!
Now if only my kidneys would appreciate a little more I can pay this gas bill...
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