Author Topic: Investments (Read 2203 times)

Marlelar · « **Reply #5 on:** October 06, 2012, 08:10:37 PM »

Quote from: Marcelino

I'd be inclined to stay in cash right now, especially after this recent round of "quantitative easing." I think the fed did that, because they see a global recession coming. So, i would probably wait until stocks went on "sale," because i think they're pretty maxed out right now.

As far as gold goes, i have no faith in that, i think it's a bubble, just like it was in the 80s.

Best investments for right now i think are:

#1.) Paying Off Debt

#2.) Building Savings, For The Next Big Fat Sale :ready-to-eat:

I also think being debt free is the best strategy for the future.

As far as gold goes it is really a long term wealth conservation strategy. Gold has never been worth nothing, but fiat currencies sure have. Silver might be a better choice as it is w/in reach of most people and has so many industrial uses that it may well hold its value better than gold.

I think investing in education is always good, especially trades and/or skills and the tools needed to practice them.

Raw land would be another option. Even if you didn't need/want to move onto it in your life time it is something to pass on to your children and grandchildren.

Marsha

Loriann · « **Reply #6 on:** October 06, 2012, 08:24:43 PM »

Commodities like gold and silver do fluctuate, but if the dollar crashed, they will be viable currency. The penny stocks are a one in a million thing for making money, but it does happen.

If spending does not get reeled in, and Bernacki still prints funny money, then inflation is going to hit and everything is going to be much more expensive to buy.

Marcelino · « **Reply #7 on:** October 06, 2012, 08:43:33 PM »

I hate inflation, like most people, but the thing that really gets me about it is the gains in productivity that get devoured by inflation, that we sort of don't see. Productivity gains should be reducing overall prices by one or two percent a year, but instead, we see prices increasing by two or three percent a year, while the media cheers: "inflation is under control!" :sign-surrender:

Marlelar · « **Reply #8 on:** October 06, 2012, 09:25:33 PM »

Quote from: Marcelino

I hate inflation, like most people, but the thing that really gets me about it is the gains in productivity that get devoured by inflation, that we sort of don't see. Productivity gains should be reducing overall prices by one or two percent a year, but instead, we see prices increasing by two or three percent a year, while the media cheers: "inflation is under control!" :sign-surrender:

I have a cookbook from 1975 and in the back she listed local prices alongside her menus so people could see what a menu cost. Here are just a few of the items:

chicken leg quarters - .49/lb
ground beef - .79/lb
frozen peas - .53/lb
onions - .11/lb
5lbs potatoes - .20
lrg eggs .81/doz
coffee - 1.05/lb
5 lbs flour - 1.05
4 lbs rice - 1.29
gallon whole milk - 1.39 (I paid $3.51 last week)

Using an inflation calculator that I found online that $1.39 gallon of milk "should" cost $5.95, so maybe our productivity gains have been helpful after all? Still seems like food is expensive though, but maybe not as bad as it could be.
Cold comfort when doing the shopping.

Marsha

Marcelino · « **Reply #9 on:** October 06, 2012, 09:33:18 PM »

Quote from: Marlelar

Quote from: Marcelino
I hate inflation, like most people, but the thing that really gets me about it is the gains in productivity that get devoured by inflation, that we sort of don't see. Productivity gains should be reducing overall prices by one or two percent a year, but instead, we see prices increasing by two or three percent a year, while the media cheers: "inflation is under control!" :sign-surrender:

I have a cookbook from 1975 and in the back she listed local prices alongside her menus so people could see what a menu cost. Here are just a few of the items:

chicken leg quarters - .49/lb
ground beef - .79/lb
frozen peas - .53/lb
onions - .11/lb
5lbs potatoes - .20
lrg eggs .81/doz
coffee - 1.05/lb
5 lbs flour - 1.05
4 lbs rice - 1.29
gallon whole milk - 1.39 (I paid $3.51 last week)

Using an inflation calculator that I found online that $1.39 gallon of milk "should" cost $5.95, so maybe our productivity gains have been helpful after all? Still seems like food is expensive though, but maybe not as bad as it could be.
Cold comfort when doing the shopping.

Marsha

Amazing! Government's own statistics, we've averaged 4% inflation, since the 1960s. Of course, productivity is supposed to have averaged around 2%. So, our "real" overall rate of inflation is considered to have averaged 6% since 1960. But, i think it's supposed to be based on an average of the "basic necessities of life." And i know the department of agriculture has a relatively large budget. Some of that may be directed at keeping food prices down, in order to moderate civil unrest.

20 cents for 5lbs of potatoes!