Where is the best place to put my money?

[masayako]

Deflation is what we hope.

Inflation is what actually happening.

It costs me to buy lunch at $7.00 dollars 3-4 yrs ago. Nowadays, $10 dollars is the norm. That’s just one example.

[socrattt]

[quote=stockstradr]

Almost every single item my family consumes, from cars to food to clothes to rent to satellite TV to electronic toys, has declined in price say 10% to 20% even 30% since late 2007.

[/quote]

I will beg to differ on this matter. I bought a 2007 Chevy Tahoe in early 2007 used for $33K, I sold it in mid 2008 (before the meltdown) for $26K, which was the most I could get for the vehicle after a 2 months of marketing on Cars.com, Auto Trader and Ebay.

I was recently foolish enough to buy the exact same car, yes a 2007 Chevy Tahoe, loaded with everything (4×4, nav, dvd, etc.) and similar miles to the one I sold and couldn’t get it for less than $28K (I had to buy it out of Texas and have it shipped). I challenge anyone to prove me wrong, but certain vehicles have responded opposite, which makes me believe we are facing inflationary forces along with deflationary.

No economist can predict where we are going to be 6, 12 or 24 months from now. I think the best strategy is leveraging your portfolio with a bit of cash, gold and keeping yourself as far away from the stock market as possible. I believe in 2009 we created 2 bubbles once again, which include both the stock market and RE markets. Crash 2.0 is coming soon. Unfortunately the hard part is figuring out the best strategy to mitigate the risks.

[socrattt]

[quote=stockstradr]

Almost every single item my family consumes, from cars to food to clothes to rent to satellite TV to electronic toys, has declined in price say 10% to 20% even 30% since late 2007.

[/quote]

I will beg to differ on this matter. I bought a 2007 Chevy Tahoe in early 2007 used for $33K, I sold it in mid 2008 (before the meltdown) for $26K, which was the most I could get for the vehicle after a 2 months of marketing on Cars.com, Auto Trader and Ebay.

I was recently foolish enough to buy the exact same car, yes a 2007 Chevy Tahoe, loaded with everything (4×4, nav, dvd, etc.) and similar miles to the one I sold and couldn’t get it for less than $28K (I had to buy it out of Texas and have it shipped). I challenge anyone to prove me wrong, but certain vehicles have responded opposite, which makes me believe we are facing inflationary forces along with deflationary.

No economist can predict where we are going to be 6, 12 or 24 months from now. I think the best strategy is leveraging your portfolio with a bit of cash, gold and keeping yourself as far away from the stock market as possible. I believe in 2009 we created 2 bubbles once again, which include both the stock market and RE markets. Crash 2.0 is coming soon. Unfortunately the hard part is figuring out the best strategy to mitigate the risks.

[socrattt]

[quote=stockstradr]

Almost every single item my family consumes, from cars to food to clothes to rent to satellite TV to electronic toys, has declined in price say 10% to 20% even 30% since late 2007.

[/quote]

I will beg to differ on this matter. I bought a 2007 Chevy Tahoe in early 2007 used for $33K, I sold it in mid 2008 (before the meltdown) for $26K, which was the most I could get for the vehicle after a 2 months of marketing on Cars.com, Auto Trader and Ebay.

I was recently foolish enough to buy the exact same car, yes a 2007 Chevy Tahoe, loaded with everything (4×4, nav, dvd, etc.) and similar miles to the one I sold and couldn’t get it for less than $28K (I had to buy it out of Texas and have it shipped). I challenge anyone to prove me wrong, but certain vehicles have responded opposite, which makes me believe we are facing inflationary forces along with deflationary.

No economist can predict where we are going to be 6, 12 or 24 months from now. I think the best strategy is leveraging your portfolio with a bit of cash, gold and keeping yourself as far away from the stock market as possible. I believe in 2009 we created 2 bubbles once again, which include both the stock market and RE markets. Crash 2.0 is coming soon. Unfortunately the hard part is figuring out the best strategy to mitigate the risks.

[socrattt]

[quote=stockstradr]

Almost every single item my family consumes, from cars to food to clothes to rent to satellite TV to electronic toys, has declined in price say 10% to 20% even 30% since late 2007.

[/quote]

I will beg to differ on this matter. I bought a 2007 Chevy Tahoe in early 2007 used for $33K, I sold it in mid 2008 (before the meltdown) for $26K, which was the most I could get for the vehicle after a 2 months of marketing on Cars.com, Auto Trader and Ebay.

I was recently foolish enough to buy the exact same car, yes a 2007 Chevy Tahoe, loaded with everything (4×4, nav, dvd, etc.) and similar miles to the one I sold and couldn’t get it for less than $28K (I had to buy it out of Texas and have it shipped). I challenge anyone to prove me wrong, but certain vehicles have responded opposite, which makes me believe we are facing inflationary forces along with deflationary.

No economist can predict where we are going to be 6, 12 or 24 months from now. I think the best strategy is leveraging your portfolio with a bit of cash, gold and keeping yourself as far away from the stock market as possible. I believe in 2009 we created 2 bubbles once again, which include both the stock market and RE markets. Crash 2.0 is coming soon. Unfortunately the hard part is figuring out the best strategy to mitigate the risks.

[socrattt]

[quote=stockstradr]

Almost every single item my family consumes, from cars to food to clothes to rent to satellite TV to electronic toys, has declined in price say 10% to 20% even 30% since late 2007.

[/quote]

I will beg to differ on this matter. I bought a 2007 Chevy Tahoe in early 2007 used for $33K, I sold it in mid 2008 (before the meltdown) for $26K, which was the most I could get for the vehicle after a 2 months of marketing on Cars.com, Auto Trader and Ebay.

I was recently foolish enough to buy the exact same car, yes a 2007 Chevy Tahoe, loaded with everything (4×4, nav, dvd, etc.) and similar miles to the one I sold and couldn’t get it for less than $28K (I had to buy it out of Texas and have it shipped). I challenge anyone to prove me wrong, but certain vehicles have responded opposite, which makes me believe we are facing inflationary forces along with deflationary.

No economist can predict where we are going to be 6, 12 or 24 months from now. I think the best strategy is leveraging your portfolio with a bit of cash, gold and keeping yourself as far away from the stock market as possible. I believe in 2009 we created 2 bubbles once again, which include both the stock market and RE markets. Crash 2.0 is coming soon. Unfortunately the hard part is figuring out the best strategy to mitigate the risks.

[Anonymous]

Great topic, I have been in the gold bug camp for awhile now. I agrre with some here that deflation will be around in the short term, however the only way the Feds can pay off this emormous debt is through inflated dollars. Or maybe they never need to pay it off if inflation makes $13T look like pocket change.

With that being said, I have a question for all of you PIGGS. Through reading this blog and heeding the advise of many, I sold my house in early 2006, very near the peak. Rented it back from the investor/owner, until be lost it in foreclosure. No worries though, I was there at the courthouse steps to purchase it back for less than I paid in 1998. Never had to move and own the house outright.

Now, here is my question. Would it be wise to do a cash-out refi at 4.5% and invest that money in property/gold or something else? I’m figuring that with the tax savings, my net interest costs would be somewhere around 3.25%. If inflation takes off in the next 2-5 years, like we’ve seen in the past, I’m thinking I’ll make out pretty good.

Am I wrong?

[Anonymous]

Great topic, I have been in the gold bug camp for awhile now. I agrre with some here that deflation will be around in the short term, however the only way the Feds can pay off this emormous debt is through inflated dollars. Or maybe they never need to pay it off if inflation makes $13T look like pocket change.

With that being said, I have a question for all of you PIGGS. Through reading this blog and heeding the advise of many, I sold my house in early 2006, very near the peak. Rented it back from the investor/owner, until be lost it in foreclosure. No worries though, I was there at the courthouse steps to purchase it back for less than I paid in 1998. Never had to move and own the house outright.

Now, here is my question. Would it be wise to do a cash-out refi at 4.5% and invest that money in property/gold or something else? I’m figuring that with the tax savings, my net interest costs would be somewhere around 3.25%. If inflation takes off in the next 2-5 years, like we’ve seen in the past, I’m thinking I’ll make out pretty good.

Am I wrong?

[Anonymous]

Great topic, I have been in the gold bug camp for awhile now. I agrre with some here that deflation will be around in the short term, however the only way the Feds can pay off this emormous debt is through inflated dollars. Or maybe they never need to pay it off if inflation makes $13T look like pocket change.

With that being said, I have a question for all of you PIGGS. Through reading this blog and heeding the advise of many, I sold my house in early 2006, very near the peak. Rented it back from the investor/owner, until be lost it in foreclosure. No worries though, I was there at the courthouse steps to purchase it back for less than I paid in 1998. Never had to move and own the house outright.

Now, here is my question. Would it be wise to do a cash-out refi at 4.5% and invest that money in property/gold or something else? I’m figuring that with the tax savings, my net interest costs would be somewhere around 3.25%. If inflation takes off in the next 2-5 years, like we’ve seen in the past, I’m thinking I’ll make out pretty good.

Am I wrong?

[Anonymous]

Great topic, I have been in the gold bug camp for awhile now. I agrre with some here that deflation will be around in the short term, however the only way the Feds can pay off this emormous debt is through inflated dollars. Or maybe they never need to pay it off if inflation makes $13T look like pocket change.

With that being said, I have a question for all of you PIGGS. Through reading this blog and heeding the advise of many, I sold my house in early 2006, very near the peak. Rented it back from the investor/owner, until be lost it in foreclosure. No worries though, I was there at the courthouse steps to purchase it back for less than I paid in 1998. Never had to move and own the house outright.

Now, here is my question. Would it be wise to do a cash-out refi at 4.5% and invest that money in property/gold or something else? I’m figuring that with the tax savings, my net interest costs would be somewhere around 3.25%. If inflation takes off in the next 2-5 years, like we’ve seen in the past, I’m thinking I’ll make out pretty good.

Am I wrong?

[Anonymous]

Great topic, I have been in the gold bug camp for awhile now. I agrre with some here that deflation will be around in the short term, however the only way the Feds can pay off this emormous debt is through inflated dollars. Or maybe they never need to pay it off if inflation makes $13T look like pocket change.

With that being said, I have a question for all of you PIGGS. Through reading this blog and heeding the advise of many, I sold my house in early 2006, very near the peak. Rented it back from the investor/owner, until be lost it in foreclosure. No worries though, I was there at the courthouse steps to purchase it back for less than I paid in 1998. Never had to move and own the house outright.

Now, here is my question. Would it be wise to do a cash-out refi at 4.5% and invest that money in property/gold or something else? I’m figuring that with the tax savings, my net interest costs would be somewhere around 3.25%. If inflation takes off in the next 2-5 years, like we’ve seen in the past, I’m thinking I’ll make out pretty good.

Am I wrong?

[briansd1]

[quote=socrattt]
I was recently foolish enough to buy the exact same car, yes a 2007 Chevy Tahoe, loaded with everything (4×4, nav, dvd, etc.) and similar miles to the one I sold and couldn’t get it for less than $28K (I had to buy it out of Texas and have it shipped). [/quote]

What company did you us to ship your car? I need to ship a small truck back East. The used trucks back East are all rusted so it’s better to buy them here.

[quote=socrattt]
I challenge anyone to prove me wrong, but certain vehicles have responded opposite,
[/quote]

Depends on the car. But generally, if you buy a new car, at the lower and mid level, you now get more vehicle for the money.

Toyota Tacomas really hold their values for a long time, especially the clean, low mileage ones.

Cadillacs are definitely deflationary on the used market. You can get a used (formerly expensive car) for next to nothing.

[quote=socrattt]
which makes me believe we are facing inflationary forces along with deflationary.
[/quote]

Anything made in China is deflationary. I bought some garden tools at Sears. You can buy shears and other fairly good quality garden tools for less then $10. Use them and throw them away.

In my grand father’s time, they were precious tools. You cleaned them and oiled them to prevent rust after use.

Quality food, utilities and services are inflationary.

[briansd1]

[quote=socrattt]
I was recently foolish enough to buy the exact same car, yes a 2007 Chevy Tahoe, loaded with everything (4×4, nav, dvd, etc.) and similar miles to the one I sold and couldn’t get it for less than $28K (I had to buy it out of Texas and have it shipped). [/quote]

What company did you us to ship your car? I need to ship a small truck back East. The used trucks back East are all rusted so it’s better to buy them here.

[quote=socrattt]
I challenge anyone to prove me wrong, but certain vehicles have responded opposite,
[/quote]

Depends on the car. But generally, if you buy a new car, at the lower and mid level, you now get more vehicle for the money.

Toyota Tacomas really hold their values for a long time, especially the clean, low mileage ones.

Cadillacs are definitely deflationary on the used market. You can get a used (formerly expensive car) for next to nothing.

[quote=socrattt]
which makes me believe we are facing inflationary forces along with deflationary.
[/quote]

Anything made in China is deflationary. I bought some garden tools at Sears. You can buy shears and other fairly good quality garden tools for less then $10. Use them and throw them away.

In my grand father’s time, they were precious tools. You cleaned them and oiled them to prevent rust after use.

Quality food, utilities and services are inflationary.

[briansd1]

[quote=socrattt]
I was recently foolish enough to buy the exact same car, yes a 2007 Chevy Tahoe, loaded with everything (4×4, nav, dvd, etc.) and similar miles to the one I sold and couldn’t get it for less than $28K (I had to buy it out of Texas and have it shipped). [/quote]

What company did you us to ship your car? I need to ship a small truck back East. The used trucks back East are all rusted so it’s better to buy them here.

[quote=socrattt]
I challenge anyone to prove me wrong, but certain vehicles have responded opposite,
[/quote]

Depends on the car. But generally, if you buy a new car, at the lower and mid level, you now get more vehicle for the money.

Toyota Tacomas really hold their values for a long time, especially the clean, low mileage ones.

Cadillacs are definitely deflationary on the used market. You can get a used (formerly expensive car) for next to nothing.

[quote=socrattt]
which makes me believe we are facing inflationary forces along with deflationary.
[/quote]

Anything made in China is deflationary. I bought some garden tools at Sears. You can buy shears and other fairly good quality garden tools for less then $10. Use them and throw them away.

In my grand father’s time, they were precious tools. You cleaned them and oiled them to prevent rust after use.

Quality food, utilities and services are inflationary.

[briansd1]

[quote=socrattt]
I was recently foolish enough to buy the exact same car, yes a 2007 Chevy Tahoe, loaded with everything (4×4, nav, dvd, etc.) and similar miles to the one I sold and couldn’t get it for less than $28K (I had to buy it out of Texas and have it shipped). [/quote]

What company did you us to ship your car? I need to ship a small truck back East. The used trucks back East are all rusted so it’s better to buy them here.

[quote=socrattt]
I challenge anyone to prove me wrong, but certain vehicles have responded opposite,
[/quote]

Depends on the car. But generally, if you buy a new car, at the lower and mid level, you now get more vehicle for the money.

Toyota Tacomas really hold their values for a long time, especially the clean, low mileage ones.

Cadillacs are definitely deflationary on the used market. You can get a used (formerly expensive car) for next to nothing.

[quote=socrattt]
which makes me believe we are facing inflationary forces along with deflationary.
[/quote]

Anything made in China is deflationary. I bought some garden tools at Sears. You can buy shears and other fairly good quality garden tools for less then $10. Use them and throw them away.

In my grand father’s time, they were precious tools. You cleaned them and oiled them to prevent rust after use.

Quality food, utilities and services are inflationary.

[Author]

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