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Protection against collapse

Posted on 8/27/22 at 8:32 pm
Posted by Klondikekajun
Member since Jun 2020
1441 posts
Posted on 8/27/22 at 8:32 pm
I’ve got my doom & gloom hat on this evening and am wondering what I can do to protect some wealth/assets from a possible upcoming depression. Besides the old “gold, ammo, booze& food” suggestions, are there any strategies that worked in the 20’s or elsewhere? What is realistic?
Posted by I Love Bama
Alabama
Member since Nov 2007
38423 posts
Posted on 8/27/22 at 8:35 pm to
If you think a crash is coming, you move to all cash. The crash happens and then you buy.

Posted by MDB
Baton Rouge
Member since Nov 2019
3658 posts
Posted on 8/27/22 at 8:48 pm to
Buy physical silver and be very, very patient.
This post was edited on 8/27/22 at 8:49 pm
Posted by molsusports
Member since Jul 2004
37156 posts
Posted on 8/27/22 at 9:12 pm to
Cash, treasuries, blue chip stocks, commodities or precious metals
Posted by Joshjrn
Baton Rouge
Member since Dec 2008
31732 posts
Posted on 8/27/22 at 9:12 pm to
What kind of collapse, specifically, are you looking to guard against?

Everyone who uses that word is going to have something different in mind.
Posted by PUB
New Orleans
Member since Sep 2017
20695 posts
Posted on 8/28/22 at 7:10 am to
Silver patience is 30 years. Once every 30 yrs, silver hits a non-inflation adjusted high of $49. We are in yr 12.5 since the last high. Just another 17.5 yrs to go.
It is NOT wealth preservation or a hedge against inflation.
Posted by Niner
Member since Apr 2019
2033 posts
Posted on 8/28/22 at 7:20 am to
quote:

I’ve got my doom & gloom hat on this evening and am wondering what I can do to protect some wealth/assets from a possible upcoming depression. Besides the old “gold, ammo, booze& food” suggestions, are there any strategies that worked in the 20’s or elsewhere? What is realistic?
When will the depression happen?
When will the recovery start?
Will everything that was true in the last depression be true in this one?
Do markets and the economy work the same as the 20's?
How long can you remain solvent if your assets didn't grow at all?

If you don't know the answers to these (few of many) questions, this avoidance strategy will not turn out like you think it will.
Posted by Seen
Member since Aug 2022
1127 posts
Posted on 8/28/22 at 8:27 am to
Why do people make this so complicated? If you are near retirement you should already be in conservative funds or stocks. If not, keep putting money in and buy everything cheap. They best way to make money is when the markets are down, then ride them back up.
Posted by Fat Bastard
2024 NFL pick'em champion
Member since Mar 2009
89317 posts
Posted on 8/28/22 at 8:33 am to
quote:

Buy physical silver and be very, very patient.




Posted by Pendulum
Member since Jan 2009
7929 posts
Posted on 8/28/22 at 8:43 am to
Long tlt, 40% cash for now, what i do own is pretty agressive but just dont see enough upside to stay all long equities. Been buying long dated tlt calls last couple weeks. I think Inflation will be much more hesitant to just fall off due to commodities and high inventory levels like a lot of bulls are trumpeting, and the fed is going to have to really go over the top to get it to that 2% number theyve been pumping. They doubled down at Jackson hole, so they'd really lose all credibility if they stop now. Even moreso because of the geopolitical and external forces contributing to it, I believe they will be forced to tighten until something breaks or the economy at least experiences a slowdown or shock to earnings. I think we are about to see a record inversion of yield curve with people fleeing out to long end and driving yield down while fed Jacks up the short end.

Protecting against a downturn or limited upside for a given period of time is one thing, protecting against a "crash" is quite ambiguous and seems like a fools errand to me. A "Collapse", not quite sure what that entails time wise.
This post was edited on 8/28/22 at 9:03 am
Posted by fallguy_1978
Best States #50
Member since Feb 2018
53116 posts
Posted on 8/28/22 at 12:31 pm to
I'm not that close to retirement so I'm staying fully invested and putting new money to work.

I'm pretty much only buying stocks that pay a decent dividend right now though.
Posted by go ta hell ole miss
Member since Jan 2007
14572 posts
Posted on 8/28/22 at 8:59 pm to
quote:

If you think a crash is coming, you move to all cash.


If you are going to do that it seems to make sense to move it to Marcus paying 1.7% on savings accounts.

To the OP, I bought some 3800 puts on the S&P back on August 1st with a January expiration date. I still think those will be ITM at some moment in the next five months. That is one way to hedge to the downside.
This post was edited on 8/28/22 at 9:12 pm
Posted by AUCE05
Member since Dec 2009
44967 posts
Posted on 8/28/22 at 9:28 pm to
I see why most of you will never retire
Posted by CajunTiger92
Member since Dec 2007
2861 posts
Posted on 8/28/22 at 9:37 pm to
I raised cash toward the end of the summer rally (about 50%), trimmed my O&G positions a bit but may add it back soon, and have positions in SQQQ, SDS and QID. The inverse funds I plan to sell when we get to around 3950-3900 and then reassess.
Posted by go ta hell ole miss
Member since Jan 2007
14572 posts
Posted on 8/28/22 at 10:05 pm to
quote:

have positions in SQQQ, SDS and QID. The inverse funds I plan to sell when we get to around 3950-3900 and then reassess.


You are long triple inverse funds? That is a gutsy move with daily resets.
Posted by Aubie Spr96
lolwut?
Member since Dec 2009
43983 posts
Posted on 8/29/22 at 8:21 am to
TAIL.


Posted by slackster
Houston
Member since Mar 2009
91362 posts
Posted on 8/29/22 at 8:39 am to
quote:

Been buying long dated tlt calls last couple weeks. I think Inflation will be much more hesitant to just fall off due to commodities and high inventory levels like a lot of bulls are trumpeting, and the fed is going to have to really go over the top to get it to that 2% number theyve been pumping. They doubled down at Jackson hole, so they'd really lose all credibility if they stop now. Even moreso because of the geopolitical and external forces contributing to it, I believe they will be forced to tighten until something breaks or the economy at least experiences a slowdown or shock to earnings. I think we are about to see a record inversion of yield curve with people fleeing out to long end and driving yield down while fed Jacks up the short end.


That’s a ballsy as frick prediction. Do you really think long dated yields are going down in any substantial way?

Seems like the risk/reward is far more attractive to just buy 3-Month treasuries.
Posted by el Gaucho
He/They
Member since Dec 2010
58529 posts
Posted on 8/29/22 at 8:50 am to
Sorry bruh

If you’re a millenial you’ve lived your entire life in a depression

The generations above us voted for the movie star and the cool saxophone player that sent all the good factory and mining jobs to Mexico leaving millenials no choice but a life of indentured servitude at the call center
Posted by Jon Ham
Member since Jun 2011
29609 posts
Posted on 8/29/22 at 9:15 am to
Today I’m buying QQQ. We are a 32% gain away from the highs. Could I get an even better opportunity in the near future? Maybe, but you gotta buy into these dips when you get a chance.
Posted by Bdiddy
Member since Jul 2021
313 posts
Posted on 8/29/22 at 9:33 am to
I gave up predicting a long time ago. Who predicts 9/11, pandemics, etc. in advance? I assume that anything that's happened before can happen again, so my allocation is always something that I could maintain in the face of a 50% market crash. This does not lead me to totally avoid equites as I also have to be able to sit through a couple of years of 20% gains, and I cannot afford to entirely miss out. I continue to buy in my plans, and I make small rebalancing moves during extremes in the market. As a result, I don't even look at my "statements" (online balances) when the market is down. I am only a few years out for normal retirement age. I am slowly trading some upside for guaranteed income. I am sure the "math" would tell me to do otherwise, but I sleep easily, and know that I will never sell my equities in a panic.
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