Thanks. Since this isn't investment advice, I'll just tell you how I'm positioned personally (nothing fancy, risky, or exotic). I have a lot of short-term fixed income as dry powder, mostly T-bills, plus low-cost value and resource stock funds - domestic for taxable accounts, more international developed value and EM for tax-deferred accounts. When mortgage rates were <3% I borrowed a conservative sum on my paid off house for 30 years and invested it in boring value funds since the real value of the loan will fade away in the case of inflation (it already has). I'm just looking for modest real income and capital preservation - not scoring a bonanza because I made the right macro call.
I like your approach. What you have in short term fixed income I probably have in gold and preferred shares. Unfortunately I don’t own the house i live in so can’t get that same nice loan you toom on it. Thanks
If you're really, really concerned about this becoming a runaway problem one day then you want to own "things" rather than promises (fixed income). Cryptocurrency isn't a promise - it's famously nobody's liability - so is it a thing? I'm not sure. It's doing great now, but it certainly hasn't acted like a safe haven the handful of times it's been tested in market selloffs. I personally have more faith in things that are tangible like ownership in a company, real estate, forestland, mineral rights, or even intangible ones like intellectual property (companies that own valuable media or patents).
No, but it's fascinating and I might review a book or two on crypto in the future in this newsletter. If I have the time I might also write about the psychology of today's investment manias (I wrote a book a couple of years ago about GameStop called "The Revolution That Wasn't"). You can't exactly compare it to something like the dot-com boom. You have the usual people taking part - the naive, innumerate ones and then the cynics and opportunists along for the ride, believing they can make a bundle and get out, plus the serious institutional people who invest pensioners' money into a bubble because of career risk. Now there's a third group that buys things more out of anger at society and seeking a sense of online camaraderie than personal greed.
I just went to GoDaddy to see if FartCoin.com is available. Sadly, some other genius got to it first. However, you can still get FartCoin.mobi, FartCoin.blog, or even JewelryFart.com (?)
Good luck!
What a time to be alive. And flatulent.
Very good piece. Is there acc. To you any place to hide in case “it” happens?
Thanks. Since this isn't investment advice, I'll just tell you how I'm positioned personally (nothing fancy, risky, or exotic). I have a lot of short-term fixed income as dry powder, mostly T-bills, plus low-cost value and resource stock funds - domestic for taxable accounts, more international developed value and EM for tax-deferred accounts. When mortgage rates were <3% I borrowed a conservative sum on my paid off house for 30 years and invested it in boring value funds since the real value of the loan will fade away in the case of inflation (it already has). I'm just looking for modest real income and capital preservation - not scoring a bonanza because I made the right macro call.
I like your approach. What you have in short term fixed income I probably have in gold and preferred shares. Unfortunately I don’t own the house i live in so can’t get that same nice loan you toom on it. Thanks
I love it, and the historical background you add to your writing makes reading it a pleasure. Please keep it up.
Thank you!
I wonder what your thoughts are on Bitcoin as a protection from that.
If you're really, really concerned about this becoming a runaway problem one day then you want to own "things" rather than promises (fixed income). Cryptocurrency isn't a promise - it's famously nobody's liability - so is it a thing? I'm not sure. It's doing great now, but it certainly hasn't acted like a safe haven the handful of times it's been tested in market selloffs. I personally have more faith in things that are tangible like ownership in a company, real estate, forestland, mineral rights, or even intangible ones like intellectual property (companies that own valuable media or patents).
Thanks for the reply, i share that view. Do you have any write-ups with your thoughts on crypto in general?
No, but it's fascinating and I might review a book or two on crypto in the future in this newsletter. If I have the time I might also write about the psychology of today's investment manias (I wrote a book a couple of years ago about GameStop called "The Revolution That Wasn't"). You can't exactly compare it to something like the dot-com boom. You have the usual people taking part - the naive, innumerate ones and then the cynics and opportunists along for the ride, believing they can make a bundle and get out, plus the serious institutional people who invest pensioners' money into a bubble because of career risk. Now there's a third group that buys things more out of anger at society and seeking a sense of online camaraderie than personal greed.
I definitely see the latter group in crypto, mostly because the core of participants are more cult-like and "believers".
I'd have a look at the book :-)
Upton Sinclair, not Sinclair Lewis, is the more likely source of the quote you used, see
https://quoteinvestigator.com/2017/11/30/salary/
Arghh - yes, The Jungle Guy, not the Narnia guy. Fixed.
Ottimo articolo, grazie Lorenzo!!!
L'ho girato al nostro amico Paulo :-)