I’m Chicken Little.
I have been reading a lot of articles on how precarious things are for the US economy. The dollar is in bad shape and the world is moving away from using it as the main currency. We did not recover from the last recession in way that economists think was healthy or normal because of the low interest rates. Our debt, both personal and national is huge. People quit saving over the last few years because they didn’t think they needed to because their house was appreciating in such a crazy way. I think there is going to be a huge financial slaughter over the housing market when the dust settles. Many lending institutions are going to go under. In my opinion, the housing market is going to be a flash point for a big recession. Quite a few people are saying that oil could go to $100 or higher, depending on what happens with Iran. Then, if the bird flu hits….
I am in asset protection mode. After selling my house last year, I invested heavily in the stock market. I made a nice return. I sold 75% of my portfolio a week and a half ago. It goes against the grain to have all off that money sitting as cash but I’m having a hard time deciding where to put it. Everything has been on a bull run the last few years – housing, stocks, commodities. This very unusual. It seems to me that we could be looking a Perfect Storm.
For the first time ever, I’m considering buying some Puts.
