> Well, the Fed rate cut means massive future inflation. How to invest?

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Zathrus
#1 2007-11-02 11:30:47

Well, the Fed rate cut means massive future inflation. How to invest?

Well, the Fed made the decision to help Wall Street and fuq the rest of us. The falling dollar is putting presure to increase inflation, foreign goods are going to increase in price. The Fed should have raised rates to head off this inflation. If you read between the lines in magazines like Barrons that is what the experts think.

But every economic disaster has a way to profit from it.

How should we invest to profit in the coming inflationary environment?

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plucky_goatse
#2 2007-11-02 12:06:55

Re: Well, the Fed rate cut means massive future inflation. How to invest?

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Stealing_Mirrors
#3 2007-11-02 12:47:12

Re: Well, the Fed rate cut means massive future inflation. How to invest?

I'm working on the same problem.  I am not sure, but I am almost positive gold isn't the way to go.  Over a long period of time, gold is not a very safe investment and fluctuates wildly.  Plus, I think gold is near the top.

[img]http://www.kitco.com/LFgif/au883-999.gif[/img]

Dot com much?

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Zathrus
#4 2007-11-02 12:57:54

Re: Well, the Fed rate cut means massive future inflation. How to invest?

Stealing_Mirrors wrote:

I'm working on the same problem.  I am not sure, but I am almost positive gold isn't the way to go.  Over a long period of time, gold is not a very safe investment and fluctuates wildly.  Plus, I think gold is near the top.

http://www.kitco.com/LFgif/au883-999.gif

Dot com much?

Yea, they're saying gold isn't moving like it used to.

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Stealing_Mirrors
#5 2007-11-02 13:50:53

Re: Well, the Fed rate cut means massive future inflation. How to invest?

Zathrus wrote:

Yea, they're saying gold isn't moving like it used to.

I still think a well diversified portfolio is the way to go.  I have a good mix of international and domestic index funds plus real estate.  At any point one of them can shyt the bed, but the others will  hopefully pull through.  Then again, I am a very long term investor.  I don't "Play the market"

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StudSupreme
#6 2007-11-02 15:33:59

Re: Well, the Fed rate cut means massive future inflation. How to invest?

Zathrus wrote:

Yea, they're saying gold isn't moving like it used to.

Just move to Cuba, Z.
It's a worker's paradise - free medical care, free living quarters, free everything. Money has no value there, and it's a classless society. Just the place for a pseudo-intellectual with flowery socialist - collectivist leanings such as yourself.

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Fuzzy Logic
#7 2007-11-02 15:45:26

Re: Well, the Fed rate cut means massive future inflation. How to invest?

The first of a gazillion baby boomers retired recently...

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Zathrus
#8 2007-11-02 15:53:30

Re: Well, the Fed rate cut means massive future inflation. How to invest?

StudSupreme wrote:

Just move to Cuba, Z.
It's a worker's paradise - free medical care, free living quarters, free everything. Money has no value there, and it's a classless society. Just the place for a pseudo-intellectual with flowery socialist - collectivist leanings such as yourself.

You honestly see a difference between Cuba, and Bush's concept of an enormous government with complete control over all aspects of the economy and of society, and massive security agencies with total control over the people? 

I don't. Cuba is way to far to the right to me.

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The_Terrible_Dot
#9 2007-11-02 19:54:39

Re: Well, the Fed rate cut means massive future inflation. How to invest?

http://www.campidiot.com/ci/viewtopic.php?id=30665

Peter Schiff may not be a genius, but he's full of good sense and I think he's honest.

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Jewkiller
#10 2007-11-02 22:22:35

Re: Well, the Fed rate cut means massive future inflation. How to invest?

Don't you wish you'd bought gold in 2001?

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StudSupreme
#11 2007-11-03 00:07:05

Re: Well, the Fed rate cut means massive future inflation. How to invest?

Zathrus wrote:

You honestly see a difference between Cuba, and Bush's concept of an enormous government with complete control over all aspects of the economy and of society, and massive security agencies with total control over the people? 

I don't. Cuba is way to far to the right to me.

frothingrantingcommiepinkofuqtardsezwha?

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The_Scum
#12 2007-11-03 00:48:22

Re: Well, the Fed rate cut means massive future inflation. How to invest?

So far this year I've been short selling homebuilders.  I am now up over 30%.  It would be more but I had some losers (not homebuilder shorts).  However, homebuilders are taking their third leg down and not much is left to milk out until they go belly up.

I was short a bank earlier and covered with about a 10% gain.  Financials are taking it up the ass hard so I may milk my homebuilder shorts a little longer then switch to shorting financials.

If you don't want to short individual stocks or your brokerage won't let you you can short real estate by buying the SRS etf fund and short financials by buying the SKF etf fund.  I will probably buy the SKF etf to short financials.

And yes, gold is on a tear but there are other ways to make money too.

All gains I listed are pretax percentages.

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The_Scum
#13 2007-11-03 00:51:56

Re: Well, the Fed rate cut means massive future inflation. How to invest?

Funny how a lot of Beta males felt it necessary to post bullshyt on this valid thread.

I don't consider Zathrus, Mirrors and Dots responses as Beta male type.

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Vyvyan_Basterd
#14 2007-11-03 01:33:26

Re: Well, the Fed rate cut means massive future inflation. How to invest?

I saw an interesting quote in a recent NYT article

http://www.nytimes.com/2007/10/13/busin … oref=login

Ms. Warren added: “Although many savers are sophisticated enough to understand the stock market is the place to be long term, they believe its fundamentals are crazy now and they cannot tolerate the risk. I’m one — my husband and I got out this summer and put our money into C.D.’s.”

She's a Harvard prof and finance specialist, so I think she knows what she's doing.

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Hell_Is_Like_Newark
#15 2007-11-03 02:40:02

Re: Well, the Fed rate cut means massive future inflation. How to invest?

I invested in a few companies that have a focus on natural gas / energy services in Appalachia.  Overall, they have been doing really, really well (both in cap growth and dividend payment).  If the sunspot / global temp theory has any weight, the next couple decades will result in a spike in energy consumption due to colder weather (there are no sun spots right now).

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ooo
#16 2007-11-03 20:47:42

Re: Well, the Fed rate cut means massive future inflation. How to invest?

Old Massa of Dem Slaves wrote:

Real estate is an excellent hedge against inflation.  You buy a lot of land for $500,000 with today's dollar strength. By the time the fed gets done, that $500000 would be about the price of a pizza.    You could slide the mortgage company a fresh $1million note and tell them to keep the change. 

troof!

Buy hard assets that will always have tangible value

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Vyvyan_Basterd
#17 2007-11-05 00:01:12

Re: Well, the Fed rate cut means massive future inflation. How to invest?

Vanguard's Emerging Markets Fund looks good (I think I'm reading the data correctly)

https://personal.vanguard.com/VGApp/hnw … hart=false

Fund info:

The fund employs a “passive management”—or indexing—investment approach by investing substantially all (normally about 95%) of its assets in the common stocks included in the MSCI® Emerging Markets Index while employing a form of index sampling to reduce risk. The MSCI Emerging Markets Index is made up of common stocks of companies located in emerging markets around the world.

1 Year    3 Year    5 Year    10 Year    
56.62%    39.43%    38.04%     12.35%

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Zathrus
#18 2007-11-05 01:03:55

Re: Well, the Fed rate cut means massive future inflation. How to invest?

Fuzzy Logic wrote:

The first of a gazillion baby boomers retired recently...

Yea, but how do you play that? Most of the common ideas, like investing in nursing homes, seem awfully risky.  That's not a profitable business.

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Vyvyan_Basterd
#19 2007-11-05 01:14:06

Re: Well, the Fed rate cut means massive future inflation. How to invest?

Zathrus wrote:

Yea, but how do you play that? Most of the common ideas, like investing in nursing homes, seem awfully risky.  That's not a profitable business.

You could look into the drug companies that make the drugs that the retiring baby boomers are/will be taking. Just make sure the drug companies that sell those drugs have broad patent portfolios that cover the drugs and variations on them. Also make sure the patents aren't going to expire anytime soon. As long as there is medicare and medicaid there will always be a market for drugs.

http://www.fool.com/news/indepth/pharma … stocks.htm

Five Reasons to Look at Pharmaceutical Stocks

Pharmaceutical companies offer unique opportunities for investors. As the Baby Boomers age, more people must regularly buy high-margin prescription drugs.

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Zathrus
#20 2007-11-05 12:33:37

Re: Well, the Fed rate cut means massive future inflation. How to invest?

Vyvyan_Basterd wrote:

You could look into the drug companies that make the drugs that the retiring baby boomers are/will be taking. Just make sure the drug companies that sell those drugs have broad patent portfolios that cover the drugs and variations on them. Also make sure the patents aren't going to expire anytime soon. As long as there is medicare and medicaid there will always be a market for drugs.

http://www.fool.com/news/indepth/pharma … stocks.htm

Well, drug companies are always risky investments unless you really study them. Their profits are way too dependent on a few blockbuster drugs.

Plus the aging population could have the opposite effect on drug company profits. There's going to be a lot of pressure on the government to set up some sort of price controls.

Also, I suspect the elderly are way over medicated. A lot of the medication the drug companies are dependent on for profits, like blood pressure and cholestrial medicine, are probably actually of limited value. Now that the government is picking up the bill, the government is one day going to start using it's scientists to push for less perscriptions.

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Stealing_Mirrors
#21 2007-11-05 14:11:45

Re: Well, the Fed rate cut means massive future inflation. How to invest?

You could look at a sector specific type of fund.  This one is closed, but it is probably going to do very well over the 10-25 years.

https://personal.vanguard.com/VGApp/hnw … IntExt=INT

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Zathrus
#22 2007-11-05 14:23:43

Re: Well, the Fed rate cut means massive future inflation. How to invest?

Stealing_Mirrors wrote:

You could look at a sector specific type of fund.  This one is closed, but it is probably going to do very well over the 10-25 years.

https://personal.vanguard.com/VGApp/hnw … IntExt=INT

Not good enough. Mastercard went from 35 to 200 in a year or two. That's the kind of returns I'm looking for.

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Stealing_Mirrors
#23 2007-11-05 14:41:46

Re: Well, the Fed rate cut means massive future inflation. How to invest?

Zathrus wrote:

Not good enough. Mastercard went from 35 to 200 in a year or two. That's the kind of returns I'm looking for.

Play the lottery.

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Zathrus
#24 2007-11-05 20:57:45

Re: Well, the Fed rate cut means massive future inflation. How to invest?

Stealing_Mirrors wrote:

Play the lottery.

I'm too lazy to look up the winning numbers. I still have a scratch off I've never bothered to scratch off.

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Stealing_Mirrors
#25 2007-11-05 21:49:11

Re: Well, the Fed rate cut means massive future inflation. How to invest?

Zathrus wrote:

I'm too lazy to look up the winning numbers. I still have a scratch off I've never bothered to scratch off.

God helps those who help themselves.

Get scratchin!!!
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