Quote:
Originally Posted by The Demon
I understand why deflation occurs, I'm just not believing it's occurring now and if it is, it's going to be a very short ride. I virtually have no dollar denominated assets either as I'm preparing for the dollar to crash. I'm interested in your investments.
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Do you not see the contraction in the volume of money and credit relative to available goods?
I agree it will be a short ride. Deflations usually are short and brutal. And when it is over, I think your scenario will have longer legs and I will be prepared to shift asset classes when the time comes.
As I mentioned earlier, I invested a lot in precious metals. I got out in 2007 a bit early and then back in near the low in 2008 and then back out when we hit 1070 (we are currently 1094/GCJ10). I still own the physical I have because it is not as liquid, and to go in and out of physical is a pain.
If you exclude the above and futures accounts, I am invested 99% in T-bills. I believe it is the safest place to be (save certain other short-term foreign gov't debt). For reasons I won't elaborate on, I also have some non-futures position geared towards natural gas.
I am under no delusions that I could be wrong on the future, but I think it is pretty clear we are in a deflationary environment currently.