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  • LAVA Moderator: streaM Freak

the market: stocks, bonds, options, whatever

ions said:
With some of the reports comparing these times to pre 2008 crash levels and the 29 crash. I want to protect my holdings with gold and silver.
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I've withdrawn 33% of my pension allocation from index funds, and put that money into the much safer money markets option. (It's basically like a savings account, based on UK government loans, and is largely safe from any crash, and pays a slightly better rate than most savings accounts, if you don't get those in the USA, and don't know what they are.)

I did that about 6 months ago, and have lost out on several hundreds of pounds of growth that has occured since then. :rolleyes:

Of course no one, except the very lucky, will be able to perfectly predict the top of the market, and historically speaking Warren Buffet has always known when markets are overvalued, and has withdrawn his money from the markets before any huge crashes.

He was 3 years too early on one relatively recent occasion, and one year too early on another. He's just done the same thing again now, so who knows how good the timing of his decision will turn out to be, on this occasion.

It seems that it's definitely a question of when and not if, the markets are going to at least substantially correct the apparent extreme overvaluations of the USA tech giants in particular.

Maybe I should increase my 'safe allocation' to 40% or more, given that I'm not that far away from retirement, and obviously have no way of knowing when the crash will occur, and how long it will last.

It's difficult as withdrawing too early misses out on lots of potential growth, and withdrawing too little and not early enough may mean many sleepless nights and worries if the crash is severe and prolonged.,

Several forecasters are predicting that any crash or correction will be relatively brief, this seems to have been increasingly the trend over more recent years, according to the forecasters predicting this.
 
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However, when you're working with the dollar @Bleaney you run the risk of everything going to 0 overnight. It's the weakest it's ever been. and we're printing $2T a year to continue to fight useless wars. At any token, precious metals are a hedge against hyperinflation and Gold IRAs such as those with birchgold.com are your best bet to be safe and protect against the reckless spending by our ruling class.
 
ions said:
However, when you're working with the dollar @Bleaney you run the risk of everything going to 0 overnight.
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lol that's not gonna happen any time soon

holding [physical] gold may be a hedge against inflation but so is holding S&P 500, which can be bought and sold at spot price with very little spread, unlike gold.
 
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