I think someone ought to start a new thread about possible diversification techniques. Those of us on piggington, who are aware of the looming problem, have no excuse to be caught blindsided. At least we should have some discussion, and then it is up to each of us whether we profit or lose from this transition.
Read “Crashproof” by the (oft quoted here) Peter Schiff. Great book.
My personal take is that there are three bubbles in the process of deflating, real estate, stock market and institutionalized debt. The trick is reduce your exposure to these where you can.
If you have equity, this means liquidating your assets *now* and going global. Sell any property you have and get out of the market. Invest in foreign currency baskets, commodity funds, energy trusts, gold and other tangible stuff. If you have a 401k and the option, move as much of it to the above as you can.
If you are in debt, like me, get rid of it as fast as you can before interest rates/min payments go up. Get your credit score and do what you can to improve it. Its possible to play games by moving cash overseas and banking on debt deflation, but thats too risky for me.
If you are employed in any sector directly in the bubble areas, or retail, consider getting a job with a company/industry that global exposure.
