How can I protect myself from an economical recession/depression?
With our country's deficits and continued war spending I'm afraid the middle of 08' will bring a huge economic downturn. What can I do now to prepare? I have a 401k, and IRA and considerable savings. Should I be storing more cash than investments? Also, I came back from working in Japan last year and never exchanged my yen. I have about 10 grand worth. I was thinking of exchanging it but should I maybe hold on to it as a cash reserve as the dollar drops over the next years? What are some actions that can be taken now to lessen the hardship to follow? Serious answers please. I didn't study economics so I wonder what the academic predictions are?
Answer:
Economics is cyclical. This means that we can look back into history to find a modle to follow. Most economic cycles are 100 years & 30 years. So, this leads us to examine what happened in 1908 & 1978.
The historical time/ cycle we will be entering is very similar to the early 1980's where the S&L Debacle ... high yeild junk bonds ... and excess prevailed. Additionally, it was inflation that really shook many people. See if you know anyone who was living during these times and get perspective from them.
The "Yen" ... well, the dollar is deflating, and the Yen is looking better than the dollar. Again, tying us to the 1980's cycle ... forien investments & growth sky rocketed. However, indicators show that China & India has the larger growth period. Keep an eye out on "Futures" for the Yen ... focus on the 1 year future price. Once this starts to drop then I'd consider exchanging the Yen for something else.
You didn't say when you're retiring ... so I'm assuming u've got a long way to go ... if so then keep your retirement a/c's diversified into 4-5 mutual funds: global growth, high yeild bonds, blue chip companies, and small amount in energy.
Other ways to pre-pair ... but large quantities (Costco). The inflation will make food & other goods very expensive in the upcoming years.
~~~~~~
Gold & silver & real-estate are bad investments (to buy into as a new holding) during inflation.
Check into silver and gold
Unless you are talking about a global recession (and I assume are taking about a recession within the US), the safest bests are the most liquid.
Investments in other strong currencies (yen, euro, pound) are good, and precious metals (gold, platinum) tend to increase when the economy slumps.
you need to secure that yen. TURN it over incase japans side drops. ALLS you can do is brace your self and stay out of debt. SECURE most of your 401 k in a secure account.
if you really think the economy is gonna blow, which it probably is thanks to our, sigh, tyranical president, i say you should probably cash in some investments you may have. but the economy may turn if hilary or obama takes the position of president. either way there will be some drop in stocks, houses, and currency value.
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Answer:
Economics is cyclical. This means that we can look back into history to find a modle to follow. Most economic cycles are 100 years & 30 years. So, this leads us to examine what happened in 1908 & 1978.
The historical time/ cycle we will be entering is very similar to the early 1980's where the S&L Debacle ... high yeild junk bonds ... and excess prevailed. Additionally, it was inflation that really shook many people. See if you know anyone who was living during these times and get perspective from them.
The "Yen" ... well, the dollar is deflating, and the Yen is looking better than the dollar. Again, tying us to the 1980's cycle ... forien investments & growth sky rocketed. However, indicators show that China & India has the larger growth period. Keep an eye out on "Futures" for the Yen ... focus on the 1 year future price. Once this starts to drop then I'd consider exchanging the Yen for something else.
You didn't say when you're retiring ... so I'm assuming u've got a long way to go ... if so then keep your retirement a/c's diversified into 4-5 mutual funds: global growth, high yeild bonds, blue chip companies, and small amount in energy.
Other ways to pre-pair ... but large quantities (Costco). The inflation will make food & other goods very expensive in the upcoming years.
~~~~~~
Gold & silver & real-estate are bad investments (to buy into as a new holding) during inflation.
Check into silver and gold
Unless you are talking about a global recession (and I assume are taking about a recession within the US), the safest bests are the most liquid.
Investments in other strong currencies (yen, euro, pound) are good, and precious metals (gold, platinum) tend to increase when the economy slumps.
you need to secure that yen. TURN it over incase japans side drops. ALLS you can do is brace your self and stay out of debt. SECURE most of your 401 k in a secure account.
if you really think the economy is gonna blow, which it probably is thanks to our, sigh, tyranical president, i say you should probably cash in some investments you may have. but the economy may turn if hilary or obama takes the position of president. either way there will be some drop in stocks, houses, and currency value.
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