Quote: (02-08-2016 10:14 PM)Onto Wrote:
When it comes to assets it's an inflation/deflation cycle you need to worry about. Timing is everything.
During times of inflation it's good to have a mixture of hard assets (Real Estate, physical Gold/Silver, Seed, guns/ammo, etc) and paper assets (Equities, Bonds) along with actual Cash (Both in a bank, but also actual bills in a safe).
However, all assets fall during times of deflation. Look at the 2008 crises. Every class of hard and soft assets went down. All of them, none was spared. Then the Fed did everything it could to inflate those assets again.
Question is, are we now heading into another cycle of deflation? Answer seems to be yes. Commodities went first, now stocks and bonds are following. Gold got some play today, and might get some momentary love, but it will go down too.
So how do you protect yourself in deflationary times? That's the real question and it depends on how active you want to be about it. If you own real estate you could sell it and then hope to buy it back at a lower price, but good real estate is hard to acquire so that's not very practical.
You can sell bonds and equities easily though, or hedge them with some short interest in the market.
You can go very short the market and do very well.
You could stay out of the market, and hold your cash for a good buying opportunity. Real Estate, Equities, Gold, etc. will all be cheaper.
I think Bitcoin is pretty risky, and is even more of a casino than the stock market. I think the idea the OP suggested about an angry teller freezing your account because your infamous is ridiculous.
And of course the best thing you can always do is curb your spending and live modestly.
Everything is cyclical, just like the sun and moon. There's no magic solution that will let us not have to take action when it comes to buying and selling. At some point you need to actively do both.
Bitcoin is in some sense "deflationary". Another way to say that is that the longer you hold bitcoins, the more purchasing power they acquire. Not sure why deflation (a lowering in the general price of goods in an economy) is a ever a bad thing. It means you're getting richer. The more goods one unit of currency can trade for, the lower the opportunity cost to use other means to acquire other ends.
And I'm not saying that a teller will freeze Roosh' assets. I'm saying that his assets could be frozen in a hypothetical situation in which a girl accuses him of rape or worse. Haven't you watched Making a Murderer? The government can literally frame you for anything with no basis for their claims.