PS – I feel like I am in the same boat. After sinking 250K in the house (hard asset)I live in, that I don’t think will depreciate much, paying full cash and no mortgage, I am still sitting on $300K CD earning 5.12%p/yr that is just “burning a hole in my pants” not knowing what to do with it with the huge recession/stagflation staring me in the face. I feel paralyzed into inaction. I keep reading economic blogs and this blog to discern whatever the best minds have in mind to guide me along and get me some strong validation to some specific action — but to no avail. I am still with no answers for myself. I feel that my money in CD’s is like a wasting asset with the misreported inflation rate. Sorry for my ramblings. And to be brutally honest, I hate those critics (esp. Dr. Pangloss) who get so condescending and resort to personal attacks,like I am doing now, of course…but here goes: I want to share that I have entertained these wealth preservation ideas personally, all of them kooky:
Perhaps withdraw some good amount and plow it in fishpond lands in the Philippines (that was where I came from). I already started a small amount in this direction ($20K) and bought me 1.5 hectares worth of fishponds. After all, if America goes into the pits and start behaving like a third-world country like the Philippines (I don’t wish it because I am an American Citizen and try to embrace the flag like the NeoCons do),no?, then it is not bad to retire 6 months each year in the Philippines –Art Bell of Coast-to-Coast–was setting an example here. Pick your third world country perhaps and invest in feeding the world that suffers in Depression, no?
Now, what would I do with the rest of my money? Shoud I invest in uranium (maybe Cameco?) because I find investing in gold and silver just plain silly. What do gold jewelries do to add to humankind? Miniscule to me. OTOH, Uranium demand might continue its upward trajectory in the future because people will need more nuclear plants — Peak Oil is the reason, no? China is definitely building more nuclear plants to power up all new empty buildings they own and needs more uranium if oil slows to a trickle….
Now, what if uranium is not ok? Should I take my money out of US CD’s and take it accross border of Canada and buy Canadian CD’s to be sheltered from vagaries of depreciating US dollar? Would Canadian banks let me, a US citizen, do that? I don’t know… Has anyone tried? How about liquidity in such should I want to withdraw it fast? These are personal questions I ask myself only–no need for others to go get answers for me.
Should I continue keeping $50K in stocks? I haven’t sold my stocks in Pfizer, Verizon, AEP, Wyeth, and CMS yet. Although I have lost money in them because I bought them in 2002 and have not seen profits at all… I still own them. (Duh!) Should I sell them all now at a loss after holding them so many years? My stocks in Honda, Mittal steel, Consol coal, BEAV aerospace – all bought in 2002, have been good to me, however. Should I continue keeping them? Again, these are personal questions I ask myself –not asking others to go get answers for me.
Wealth preservation is a hard thing for me indeed. I don’t mean to gloat…just to share and bounce my ideas to others in case the right person comes along to give me more kooky ideas to entertain.
Powayseller, pardon my musings, I admire you a lot. With your so-called “bluntness” and “blanket-ness”, those only add to your appeal to me as reader. Thank you for the so-many substantive posts you have done in the past. I don’t have the same long patience and forebearance you inherently possess. I tire and give up easily in debates. I don’t like to engage Dr. Pangloss and the likes of him, hence, I only like to read sensible posts from many others and especially yours. I didn’t intend to post much. I am by nature a wallflower or a fly in the wall given to delusions of having the same skills as Nancy’s soothsayer in the other white house. I long for reading more of your posts and wish for your continued success at increasing financial security. And I wish Good Luck to all, also.
