Monday, July 25, 2011
The Debt Ceiling, Does it matter?
Ok, so that being said what should YOU do? Well, I wouldn't hold US treasury bonds, In addition I would trim my cash positions. Ultimately real estate is the ideal investment during this time period as it has already been pummeled and provides an excellent hedge against inflation. If you can purchase real estate with cash at this time, I say DO IT. Ten years out this could prove to be one of the finest financial moves you have ever made. If you are unable to purchase real estate with cash, the next best option is a well diversified stock portfolio which in the past have shown good performance during periods of inflation. Lastly I would look to commodities, however a word of CAUTION , you are jumping on the most popular band wagon and most commodities are very expensive. You could be buying into a bubble if the economy doesn't react as violently as the world is preparing for.
Hold on it's going to be a bumpy ride, but just remember just because the ride is bumpy doesn't mean that it can't be prosperous.
Discussion Question : What are you doing to prepare for a potential US default on it's debt?