Investing General Discussion

TJT · May 12, 2020

Gurgeh said:
In order for gold to make you rich, you really need to have a world ending situation, I think most people don't expect that. Personnaly, I believe there is a strong possibility that over 2 years, it's going to make the western world stronger than before, as it's going to hasten its reindustrialization. I don't see anyone betting on emerging market, China, Africa or whatever... people are buying western world stock, and possibly Japan, Korea, Taiwan...

If you believe in inflation, you really shouldn't be holding cash. Maybe inflation on consumers good isn't going to be super crazy, but there is a real risk of inflation on the housing market and stockmarket to keep going on, as the BCE and Fed keep loaning money for free, or worse, going back to negative interest rates. So, if you believe it's bad, but in 18 months it's going to be behind us, you defintely want to have your money in housing or the stockmarket, as timing gold might prove difficult.

My philosophy on that is if you ever are in a situation where gold was going to make you rich then it would be better to invest in long-lasting food rations and lead. Lots of fucking lead.

Gurgeh · May 12, 2020

TJT said:
My philosophy on that is if you ever are in a situation where gold was going to make you rich then it would be better to invest in long-lasting food rations and lead. Lots of fucking lead.

Yeah, there is a fine line between gold is outperformerd by productive asset, and gold is useless because you need self reliance and it's all about bartering.

LachiusTZ · May 12, 2020

Buying a pound of gold was a joke.

But one that hinted at my utter lack of faith in whatever this economic event is turning out well.

And physical items should perform well with inflation

TJT · May 12, 2020

LachiusTZ said:
Buying a pound of gold was a joke.

But one that hinted at my utter lack of faith in whatever this economic event is turning out well.

And physical items should perform well with inflation

Just look at the history and plan accordingly? Buying in on physical assets to ride the storm is ideal only if you expect that you need money before you expect the market to recover.

LachiusTZ · May 12, 2020

TJT said:
Just look at the history and plan accordingly? Buying in on physical assets to ride the storm is ideal only if you expect that you need money before you expect the market to recover.

Physical = real estate, factories, agricultural land, etc. Not just bullion. Even paintings etc. Items where the relative value is retained while currency gets watered down.

I sold my only large physical asset, and glad I did.

Now I need to replace it.

TJT · May 12, 2020

LachiusTZ said:
Physical = real estate, factories, agricultural land, etc. Not just bullion. Even paintings etc. Items where the relative value is retained while currency gets watered down.

I sold my only large physical asset, and glad I did.

Now I need to replace it.

I only have the house I am in now. Although I fully expect the need to move into a bigger house in a few years I am questioning if I need to keep it instead of sell it. I don't like having too much physical assets like this. But I am considering buying land. The returns on market investments, even mediocre ones, are higher and way less ass pain than managing rentals.

LachiusTZ · May 12, 2020

TJT said:
I only have the house I am in now. Although I fully expect the need to move into a bigger house in a few years I am questioning if I need to keep it instead of sell it. I don't like having too much physical assets like this. But I am considering buying land. The returns on market investments, even mediocre ones, are higher and way less ass pain than managing rentals.

That's part of my pickle, I'm renting currently so I have zero large physical assets

TJT · May 12, 2020

LachiusTZ said:
That's part of my pickle, I'm renting currently so I have zero large physical assets

Then I'd just use the profit off of your house to buy another house then. Might be hard to do right now because from what I understand mortgage applications are frozen even if you pay 20% down.

Locnar · May 12, 2020

I see gold as cash that's inflation proof. Something you can sell easily as you need it in a inflationary situation. Thats its true role, not 'world ending mad max trade it for food'. If it gets to road warrior levels, who cares, 90 percent of us dead anyways and the other 10 percent will be living in shitty conditions.

Furry · May 12, 2020

I'm still looking forward to the end of the week. Gubmints is buying up agri and announcing trucktons more buying in the coming week, like it usually does when things go wonky, though at some point the knuckledraggers at cnn might wonder why the gubmint is buying up all the meat while there's a meat shortage for a lot of people.

But oil... same game wont work as well there.

Sanrith Descartes · May 12, 2020

LachiusTZ said:
Physical = real estate, factories, agricultural land, etc. Not just bullion. Even paintings etc. Items where the relative value is retained while currency gets watered down.

I sold my only large physical asset, and glad I did.

Now I need to replace it.

I like physical as well. I think there will be an opportunity to pick up some quality commercial real-estate in the near/mid future. I'm biding my time

Furry · May 12, 2020

Sanrith Descartes said:
I like physical as well. I think there will be an opportunity to pick up some quality commercial real-estate in the near/mid future. I'm biding my time

Physical can be an amazing investment, but I also think its important for people to limit themselves to what they properly look after. And sometimes you have to realize a physical item is only worth the joy it brings you.

I don't consider my boat an investment.

Punko · May 12, 2020

Sanrith Descartes said:
I like physical as well. I think there will be an opportunity to pick up some quality commercial real-estate in the near/mid future. I'm biding my time

I went deep on shares. I don't think the recession will be huge. A lot of wealth is going to be redistributed from deceased elderly folks to their family.

Though shit if it doesn't work out.

I don't see the reasoning behind buying property over shares. If a recession ruins shares, property prices would follow suit? Commercial real-estate seems especially vulnerable to that, unlike say, mid-level housing?

Khane · May 12, 2020

He's talking about buying property in the future, after prices have fallen. He's thinking this virus is going to have a downward effect on the housing market, a position I'm inclined to agree with.

TomServo · May 12, 2020

Yeah Orlando is going to be really hard hit by this. Housing prices are already starting to trend down in the last two weeks.

Sanrith Descartes · May 12, 2020

Khane said:
He's talking about buying property in the future, after prices have fallen. He's thinking this virus is going to have a downward effect on the housing market, a position I'm inclined to agree with.

Sanrith Descartes · May 12, 2020

Ok, disclaimer first.
Buyer beware. Do your own research. Don't blame me.

That being said. Take a look at VTIQ and Nikola. They are doing a reverse merger to take Nikol public. It should close on may 18th. Nikola makes hydrogen powered over the road trucks. The stock is moving near parabolic right now ahead of the merger. I don't have any idea if this ends up being vaporware or not. But I bet a bit that it goes public and catches a tailwind from the Tesla crowd looking to get in "on the ground floor". Go to the Nikola site and do some reading. It could be a homerun or it could be the vaporware and you lose it all.

You have been warned.

Ps.. I bought at $18 yesterday morning ( Jan calls 30 strike) and its at $26.50 as I write this. Option action is about 8x normal.

Borzak · May 12, 2020

I really don't know what to do. I'm an odd person out I know that. Until just recently I invested my money in a few businesses that I knew well and gained some control by investing in them The diversity was near zero but I accepted that risk. Even in 2008-2009 during the downturn it worked out well cause the ones that survived were in great shape to do work that normally gets pushed back year after year. Now all that has ended for the most port. The types of companies that I've put money into in the past have no idea when the taps are going to open on the big project money at all. No use spending billions on maintenance that's been pushed back for years and in some cases decades if you can't keep the doors open till demand ever picks up, if ever.

Sanrith Descartes · May 12, 2020

As a business owner I feel your pain. I'm luckier than most in that our primary customers are municipalities so we have been kept working. Its one reason I invest in defense contractor stocks. I know who their customer is.

Awanka · May 12, 2020

Dump at the close looked a bit panicky. Wonder if it gets bought up tomorrow.

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Investing General Discussion

TJT

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Gurgeh

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LachiusTZ

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TJT

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