4 ms·

The question is - if you think problems from all this are going to occur, what is the place to be in from an investment standpoint? I see a lot of handwringing

The question is - if you think problems from all this are going to occur, what is the place to be in from an investment standpoint? I see a lot of handwringing but not a ton of action and advice.

qubax 8y ago
The smart thing to do is liquidate your investments and keep a nice pile of cash ready to reinvest when there is a bailout. And I guarantee you there will be a bailout. Usually you will hear news of a bailout and the president will come out and tell people everything is okay so buy buy buy! That's what Bush said a few weeks after the 9/11. That's what Obama said on the first friday of March 2009. Before the president speaks, the FED chair will give hints as well. I'm too young to remember what happened during the savings and loan crisis of the early 90s but I'm told something similar happened. Just buy and hold and hold and hold. Crashes tend to be short lived. Recoveries take years and years. Of course if you are greedy/ambitious, you could try to make money on the way down as well by shorting the market. But that's for the degenerate gamblers. Don't do it as it's nigh impossible to predict when the markets will crash and you may go broke betting against the market.
- hcknwscommenter 8y ago
  > The smart thing to do is liquidate your investments and keep a nice pile of cash ready to reinvest when there is a bailout. Good luck with that plan
  - unknown_apostle 8y ago
    What's wrong with having a nice pile of cash at this point in time?
- noway421 8y ago
  How do you know when to sell? How much time the stock market would be in all time high? No one knows. It's incredibly hard to time the market.
tim333 8y ago
>what is the place to be in from an investment standpoint? It depends who you are and what you know really. I mean in the 08 crash ideally you'd be "John Paulson made over $15 Billion for his firm by betting against sub-prime mortgages" but it's hard to pull that off. For the average person probably life as usual but don't leverage up too much. For someone a bit more active it might make sense to sell property if you think you are at the top of a bubble and maybe rent a while. Stocks like BRKA and FFH tend to do alright both in the crashes and otherwise - run by Buffett and a Buffett copier.

The question is - if you think problems from all this are going to occur, what is the place to be in from an investment standpoint? I see a lot of handwringing but not a ton of action and advice.

qubax 8y ago

The smart thing to do is liquidate your investments and keep a nice pile of cash ready to reinvest when there is a bailout. And I guarantee you there will be a bailout. Usually you will hear news of a bailout and the president will come out and tell people everything is okay so buy buy buy! That's what Bush said a few weeks after the 9/11. That's what Obama said on the first friday of March 2009. Before the president speaks, the FED chair will give hints as well. I'm too young to remember what happened during the savings and loan crisis of the early 90s but I'm told something similar happened. Just buy and hold and hold and hold. Crashes tend to be short lived. Recoveries take years and years. Of course if you are greedy/ambitious, you could try to make money on the way down as well by shorting the market. But that's for the degenerate gamblers. Don't do it as it's nigh impossible to predict when the markets will crash and you may go broke betting against the market.

hcknwscommenter 8y ago
> The smart thing to do is liquidate your investments and keep a nice pile of cash ready to reinvest when there is a bailout. Good luck with that plan
- unknown_apostle 8y ago
  What's wrong with having a nice pile of cash at this point in time?
noway421 8y ago
How do you know when to sell? How much time the stock market would be in all time high? No one knows. It's incredibly hard to time the market.

tim333 8y ago

>what is the place to be in from an investment standpoint? It depends who you are and what you know really. I mean in the 08 crash ideally you'd be "John Paulson made over $15 Billion for his firm by betting against sub-prime mortgages" but it's hard to pull that off. For the average person probably life as usual but don't leverage up too much. For someone a bit more active it might make sense to sell property if you think you are at the top of a bubble and maybe rent a while. Stocks like BRKA and FFH tend to do alright both in the crashes and otherwise - run by Buffett and a Buffett copier.