Destino Posted May 22, 2006 Share Posted May 22, 2006 CONDITIONS in the financial markets are eerily similar to those that precipitated the “Black Monday” stock market crash of October 1987, according to leading City analysts.A report by Barclays Capital says the run-up to the 1987 crash was characterised by a widening US current-account deficit, weak dollar, fears of rising inflation, a fading boom in American house prices, and the appointment of a new chairman of the Federal Reserve Board. All have been happening in recent months, with market nerves on edge last week over fears of higher inflation and a tumbling dollar, and the perception of mixed messages on interest rates from Ben Bernanke, the new Fed chairman. http://www.timesonline.co.uk/article/0,,2095-2189601,00.html Some people on this board know about this stuff and many invest so what do you guys think? What's the investment approach to take right now? Hold on and think long term (the classic) or free up some cash to be ready to take advantage of sale prices (caused by a crash)? Link to comment Share on other sites More sharing options...
Prosperity Posted May 22, 2006 Share Posted May 22, 2006 If you think **** is going to hit the fan, then go buy gold. Link to comment Share on other sites More sharing options...
SkinsNumberOne Posted May 22, 2006 Share Posted May 22, 2006 http://www.timesonline.co.uk/article/0,,2095-2189601,00.htmlSome people on this board know about this stuff and many invest so what do you guys think? What's the investment approach to take right now? Hold on and think long term (the classic) or free up some cash to be ready to take advantage of sale prices (caused by a crash)? I am not an economist and am not really the one you want an answer from, but I'll throw in one comment I've read and somewhat subscribe to. Of course, there aren't many absolutes to be had, but at least to some degree there is less of a dependency solely on the American dollar for some companies. Globalization has led to companies having much more diversified markets. Also, there is always foreign market investment - which every good portfolio should have anyway, I think. But yeah, we really need to hear from the economists. I'll shut up now. Link to comment Share on other sites More sharing options...
Kilmer17 Posted May 22, 2006 Share Posted May 22, 2006 I've been buying silver en masse the last few months. Went down last week, so it's probably a smart buy today. Link to comment Share on other sites More sharing options...
Destino Posted May 22, 2006 Author Share Posted May 22, 2006 If you think **** is going to hit the fan, then go buy gold. I've been hearing about gold being at record prices - usually that means you missed the boat already. I'll look into silver as Kilmer suggested. Mostly though when I hear this kind of thing I think about getting ready to buy, big gains are to be had when the market prices stocks incorrectly because of fear and general bad news. Link to comment Share on other sites More sharing options...
zoony Posted May 22, 2006 Share Posted May 22, 2006 I don't think this report takes into account that the stock market is currently undervalued. There are some really good buys out there. .... Link to comment Share on other sites More sharing options...
Kilmer17 Posted May 22, 2006 Share Posted May 22, 2006 Des, Im also very encouraged by the market right now. I think it will hit 13 by the end of this year. Just diversifying into some commodities is all. Link to comment Share on other sites More sharing options...
Prosperity Posted May 22, 2006 Share Posted May 22, 2006 Des, Im also very encouraged by the market right now. I think it will hit 13 by the end of this year.Just diversifying into some commodities is all. Do you actually have the silver or whatever other commodity in some safe or bank or do you have a piece of paper saying you own some silver somewhere? Link to comment Share on other sites More sharing options...
Destino Posted May 22, 2006 Author Share Posted May 22, 2006 Do you actually have the silver or whatever other commodity in some safe or bank or do you have a piece of paper saying you own some silver somewhere? He stores it in the underground Mason base known as the ChaChing Fortress of Evil. Link to comment Share on other sites More sharing options...
Kilmer17 Posted May 22, 2006 Share Posted May 22, 2006 LOL. A bit of both actually. There are plenty of places to buy silver coins and boullion. And it saves you the transaction fee if you are buying the paper. I just looked, and it's at 12.55 a troy ounce right now. Here's a good picture of what it's done lately. I think it will hit 15 again by August. http://www.kitco.com/charts/livesilver.html#ny Link to comment Share on other sites More sharing options...
Prosperity Posted May 22, 2006 Share Posted May 22, 2006 He stores it in the underground Mason base known as the ChaChing Fortress of Evil. Is that next to the underground illuminaity Jews? I can't wait till I have some money of my own to play around with. Link to comment Share on other sites More sharing options...
endzone_dave Posted May 22, 2006 Share Posted May 22, 2006 Plus, wasn't the crash in '87 due to run-away selling by computers? Like someone said, there are a lot of undervalued stocks. Earnings for many companies are pretty good. Look at the P/E ratios of INTC, DELL, MSFT, WMT... The market is a little spooked by inflation and interest rates. I think the future will depend on consumer confidence. If gas prices cause consumers to cut way back on spending, the market should keep going down. I think people will still spend their money and the market won't keep going down a whole lot. IMHO of course. Link to comment Share on other sites More sharing options...
ntotoro Posted May 22, 2006 Share Posted May 22, 2006 Bring it on. You have to lose money to make money. Look at it as bargain shopping. Link to comment Share on other sites More sharing options...
iheartskins Posted May 22, 2006 Share Posted May 22, 2006 You guys, if you are real bears, could always sell short, and or write uncovered options. High risk, high reward. Tread lightly in commodities. Ensure you understand the risks and mechanics of commodity trading before engaging in it. Same goes for any investment vehicle. Lastly if you know any hedge fund, fund of fund, and or private equity fund managers, you could always invest with them. But minimum investments tend to be at least $250,000K (all of which you could lose). Link to comment Share on other sites More sharing options...
Fergasun Posted May 22, 2006 Share Posted May 22, 2006 I just sold off a lot last week...so I could get rid of all of my credit card debt (and my wife's). I'm going to be working straight cash for the most part from here on out. Still getting killed on the wifey's car... buying a car no money down is just about the worst thing someone can do financially... selling a car no money down must be AWESOME. Link to comment Share on other sites More sharing options...
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