I am not concerned about the government defaulting on its debt. They’ll print more money if they need to.
People have become complacent with bonds, as times have been good for so long.
I think that anyone counting on their pension funds is in for a rude awakening. The government cannot possibly bail out every pension fund. The amount of money they would have to print would devalue the dollar.
I like the recommendation made by RightSide. TIPS (in Vanguard fund), Berkshire Hathaway (to get equity exposure), and a global index fund. I will check into these. The US stock market is trading at a very high multiple of earnings, and at some point, will need a correction too.
As far as gold, I’m still waiting for 4plexowner to finish our dialogue, and to convince me that gold is a viable store of value and trade. Until then, I’m not buying any gold. Did you know that the majority of demand of gold is by jewelers? What happens during the next recession, when people cut back on their jewelry purchases? Gold will decline, right? People are not buying gold as a store of value, but rather for speculation and jewelry.
