The Market 2021

Discussion in 'Finance, Investments, and Careers' started by Folster, Jan 7, 2021.

  1. dscher

    dscher Registered

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    It's crazy how many times you can say it to yourself as well...that ALL fiat eventually goes to zero! It's still hard to understand and truly wrap your head around that concept. It's why gold is so important. It's been the only true hedge against a collapsing debt note.
     
  2. Folster

    Folster he/haw

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    I moved 20% of my mid term savings into gold. 20% gold, 25% stocks, and 55% ultra short term bonds. This is relatively a small amount of my investable assets so I am no gold bug to be clear. I just want a little hedge on my short and mid term savings.

    My retirement and long term investment accounts have no gold and are 100% stocks.
     
  3. BigRedRage

    BigRedRage Reckless Contributor

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    even then, gold is only as valuable as we decide it to be.
     
  4. Folster

    Folster he/haw

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    The fed holds some gold.
     
  5. BigRedRage

    BigRedRage Reckless Contributor

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    I'm pretty unsophisticated still. I have a 401k of course, outside of that, I have a "life savings" and a 3-4 month liquid fund always in the bank.

    Outside of that, my life savings is all invested in either stocks or crypto. It was about a 70/30 split but the crypto boomed really fast and made it almost 50/50.

    My original intention was to take my life savings out of high yield accounts and instead invest to stay ahead of inflation. The intention was just to make sure it doesnt shrink while I wait around for the housing market to dip so I can either
    A) buy property locally (large parcel) and have enough land for the kids to be able to build homes on and save money for them in the future (modular home is 100k vs a house is 400k)
    B) buy land and property up north to have as a second home.

    However, once I started investing and seeing how much it can grow, I now realize that if I take the money out, granted I would have property, but now I am starting over. 10% annually on a dollar is far different than 10% annually on $100. So, at this point, I almost want to just live off of my salary, stop making large cash purchases (I thought about putting a huge chunk down on my cybertruck but now dont think I will and just make payments) and just let the life savings be a very long term growth and retirement account instead of a real estate savings.

    The original goal was to soak up property in all ways I can and play the long game but at this point I feel like investing is a more profitable and less headache venture.
     
  6. dscher

    dscher Registered

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    Agreed. It is free to the open market. Can it temporarily be suppressed through market manipulation? Absolutely. I think we have been seeing the banks and fed slowly accumulating the past few years...This is why I believe premiums are skyrocketing along with gold and silver being on backorder/delayed shipments for a lot of precious metals dealers. The big boys are buying while the retail guys are still on the sidelines. The demand is absolutely there...supply isn't. You just don't hear CNBC talking about it. Shocker.
     
  7. dscher

    dscher Registered

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    Patience is key imo. If you are willing to wait.. things will go on sale at some point in a BIG way and youll be swimming in a sea of potential assets that you can accumulate. As buffett says.. you'll be able to get those socks on sale. :)
     
  8. elindholm

    elindholm edited for content

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    It's not based on nothing. It's based on wide-spread agreement that it's worth something. That's what money is. It's an arbitrarily defined commodity that has value through a social compact.

    Fiat currencies are backed by governments, who are backed (generally) by the people who elect and/or submit to the government. That's why the U.S. Dollar is still the #1 currency in the world: It's backed by the world's most powerful government and represents a fraction of the world's most powerful economy. "This note is legal tender for all debts, public and private." Says it right there on the currency.

    If you try to buy a loaf of bread and the guy behind the counter won't take your cash, theoretically you could appeal to his legal requirement to accept it. We get stories like this from time to time, like when some smart-*** decides to pay his utility bill with a wheelbarrow full of pennies.

    No one is ever going to compel another party to accept cryptocurrency. If the seller says "Sorry, I don't take crypto," that's the end of it. Advocates of crypto claim that that's a strength, but it's not. It's a weakness, and a potentially crippling one. If the critical mass of people willing to recognize crypto as "money" falls below a certain point, there's no reliable market for it anymore, and it becomes worthless. The only way that's going to happen with the USD is if our government loses all credibility worldwide and/or dissolves -- and if that happens, we'll have much bigger problems on our hands. The dollar is too big to fail. Bitcoin isn't and, by its own construction, can't be.
     
    Last edited: May 12, 2021
    TBaslim and Folster like this.
  9. dscher

    dscher Registered

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  10. BigRedRage

    BigRedRage Reckless Contributor

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    I'm simply hedged in Crypto due to potential, I'm not banking everything on it. In fact, I fully expect that over time, I will just sell the crypto for Fiat currency anyway. I still love the concept of it. Gold is also based on a wide spread agreement that it is worth something and so on. It's all relatively similar in my eyes. The government guarantee is why I am only 30% invested in crypto. I am there for the money and the hedge, not the presumption that it is guaranteed.
     
  11. dscher

    dscher Registered

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    Agreed. The Petro dollar will remain the strong driving force, until crude oil and the direction of price decides it's not. Imo
     
  12. dscher

    dscher Registered

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    I blame Elon.

    E1Nlx1DXsAEilDv.jpeg
     
  13. BigRedRage

    BigRedRage Reckless Contributor

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  14. BigRedRage

    BigRedRage Reckless Contributor

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  15. BigRedRage

    BigRedRage Reckless Contributor

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    we'll see what the future holds

    upload_2021-5-12_14-47-18.png
     

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