What should we invest in to guard our assets from inflation?

[jgk3]

Given that the Fed and the US government are pretending that there are no laws of economics, as they periodically pump hundreds of billions of dollars into the money supply but are staving off as long as possible the natural effects this would have on prices for all our consumer goods, what do you think we should invest in that would protect your assets from the effects of this hanging anvil of inflation, ready to fall and crush our savings and significantly reduce our purchasing power?

If you think it's in foreign banks, which ones and why do you consider them safe?

If you think its in stockpiling certain goods, consider how easily they can be liquidated for their value in cash as a primary factor for your choice.

If it's realty, let us know why you think they will at the least keep the value at which you bought them.

Have fun.

[Haykakan]

Re: What should we invest in to guard our assets from inflation?

This sounds like a good thread, i tried to make one like it before but it didnt get much attention. I think investing in growing countries is the smart thing to do. Countries like china and brazil are growing by leaps and bounds and so are the businesses there. Buying stocks in those countries seems like the prudent thing to do.

[freakyfreaky]

Re: What should we invest in to guard our assets from inflation?

Take a look at what has been happening to gold and the dollar over the past year. Gold pushing higher, dollar losing traction.

Supermarkets & fast food chains tend to do well in inflationary periods.

There may even be a play in gold excavation in Armenia.

[Haykakan]

Re: What should we invest in to guard our assets from inflation?

I have been hearing about banks dumping commodities lately, if this happens the prices will fall a lot. Gold is the highest it has ever been but dumping comodaties may effect that to.

[Muhaha]

Re: What should we invest in to guard our assets from inflation?

This sounds like a good thread, i tried to make one like it before but it didnt get much attention. I think investing in growing countries is the smart thing to do. Countries like china and brazil are growing by leaps and bounds and so are the businesses there. Buying stocks in those countries seems like the prudent thing to do.

Countries like China are growing off of the backs of Western consumers. I really don't see them going places once the average Joe in the U.S or Europe stops spending.

[Haykakan]

Re: What should we invest in to guard our assets from inflation?

Countries like China are growing off of the backs of Western consumers. I really don't see them going places once the average Joe in the U.S or Europe stops spending.

I disagree. Sure exports are a great part of their business but Asian people are starting to become consumers themslves. China has the fastest growing domestic market and it is going to get HUGE! Once a country like china becomes developed it will have a thriving domestic market which will grow regardless of the western consumer. The Chinese government is way better then our own at managing the country and its economy.

[hipeter924]

Re: What should we invest in to guard our assets from inflation?

I disagree. Sure exports are a great part of their business but Asian people are starting to become consumers themslves. China has the fastest growing domestic market and it is going to get HUGE! Once a country like china becomes developed it will have a thriving domestic market which will grow regardless of the western consumer. The Chinese government is way better then our own at managing the country and its economy.

I come from New Zealand, and China has to be my country's closest friend (and we have a free trade deal, and cultural and economic exchanges). It's friendly, kind and their people are very pleasant, and whatever western media tell you they are good business dealers, and though in it for the money they don't asset strip (like US corporations) and believe in developing the companies they take over or invest in. I know, because we had every western corporation in NZ, they only asset stripped or took away...China puts money in. A big difference.

I am a China lover myself, so maybe I am a little biased. But from my understanding China is a very nice country with great people, and it doesn't want to hurt countries but instead make them more stable and have a better economy.

So it would be wise for Armenia to develop trade and friendship with China, especially considering the way Turkey is threatening the territorial integrity of China with their sponsorship of Nadeer and her rebels.

[MrHyeSev]

Re: What should we invest in to guard our assets from inflation?

How about nothing, think about it
Just keep the money you make for yourself, you can never trust investing in something.

[Muhaha]

Re: What should we invest in to guard our assets from inflation?

How about nothing, think about it
Just keep the money you make for yourself, you can never trust investing in something.

That's the whole issue here, many people see the Fed's policies as leading to an inevitable onslaught of inflation which would make the money you saved useless. What's the point of saving $10,000 for example, if you can only buy a loaf of bread with it? You're better off stealing that loaf.

I'd like to say however, the hyper inflation that most everybody is predicting these days could very well not happen. The Fed has implemented some unique policies to make sure the banks never pump the enormous sums of money they've received into the system, which is what's required for inflation. Everybody's screaming "You're pumping the system full of useless money!" but nobody is paying attention to the fact that money hasn't left the shores of the banks. All the Fed has done is branch out these huge sums so it can aid in balancing and stabilizing the banks.

[Haykakan]

Re: What should we invest in to guard our assets from inflation?

Just leaving the money alone = losing money. Sure you may lose it if you invest to but thats where decision making becomes a factor.