Where to Invest?

[irunthereforeiam]

Hello,

This is a question I have in mind. With the recent stock market crash, I was wondering where to invest? If somebody has cash, what would be a reasonable way to invest to avoid de-valuation of USD.

Thoughts?

[Mcoroklo]

Look at this thread:
Stocks going down. Great buying opportunities.

Besides, if anyone could tell you, anyone would do it and be rich. That is not how the world works.

[Clint Cora]

I converted about 10% of my investment portfolio into precious metals back during the winter. The world economy is in ruins and because of this, gold and silver is still going to be on the increase for the next couple of years. There will be some rollercoaster rides but in general, metals are still expected to rise.

Also in some markets, real estate is still a good long term investment. I'm looking into that as well.

[SnerpGoodWord]

Originally Posted by irunthereforeiam

Hello,

This is a question I have in mind. With the recent stock market crash, I was wondering where to invest? If somebody has cash, what would be a reasonable way to invest to avoid de-valuation of USD.

Thoughts?

If your primary goal is to avoid dollar devaluation, you could invest in a basket of "risk-off" foreign currencies (Yen and Swiss Francs) and commodities (oil, agricultural, etc). Both should go up in a dollar devaluation, and the risk-off nature of the currency positions will serve to balance the risk-on nature of the commodities. That should give you a much smoother ride than say pure commodities if in fact the dollar devalues.

That said, dollar devaluation gets much more press time than it deserves and in my opinion the likelihood is overestimated. Housing, fuel, labor, stocks and most food (drought-affected grain aside) are currently cheaper than they were in 2008 although there's been big swings in both directions in that time period. In other words it's not at all clear that the long term trend is towards devaluation - we've also had major deflationary periods in recent history, and likely are in one right this minute. The analogy to Japan's "lost decade" where inflation was low to non-existent despite expansive monetary policy on the BoJ's part is a worth considering.