Thursday, December 18, 2008

Where to Invest?

Oh where oh where to invest. Stock market scary. Real Estate ugly. Fed cut rates again to almost 0%.

Meanwhile, The Federal Reserve assets increased to $2.312 trillion this week. My thoughts:
- Dollar is going to weaken significantly.
- Deflation/depression/recession next year or two at minimum
- High risk of another market collapse moment that could drag down GOLD.
- Fed puts even more dollars into the system, albeit "pushing on a string".
- If fear subsides, we'll have super inflation and high interest rates.

I still strongly believe in GOLD and want to buy on any big dip over the next year or two.








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