|
According to the likes of Thom Calandra, CBS Market Watch columnist, and economic forecasters Robert Prechter and Doug Casey, you should be selling all the stocks that you own.
People like them are forecasting a total meltdown over the coming months and years. Their advice is not to be lulled into a false sense of security by short-term rallies. The stock market is in its third year of decline and showing no sign of a change in that trend in the near future. They expect stocks to fall a LOT further and advise you get rid of all "paper" assets you may not be able to afford to hold for at least 20 years.
There is far too much credit sloshing around the world at large. The US also has a raft of problems of its own, not the least the way in which we are creating unemployment in exchange for cheap production abroad.
Gold and silver, whether coins or bullion, have been the traditional havens in such times (and not stored in banks of course). Most important is to get rid of all forms of personal debt: the US - government, companies and individuals - is now $30 trillion dollars in debt, three times the GDP and at its highest level ever.
After the stock market slumps, real estate prices will follow. If your home becomes less than outstanding debts on it, you might lose it.
Probably more of an answer than you wanted, and still a major simplification of the current economic outlook. But if the "prophets of doom" are even half right, coping over the next few years will take some serious changes in how we manage our personal finances.
|