Sunday, April 19, 2009

Greatest Economic and Banking Crisis since the 1930s will Occur Between 2010 and 2012


( Snippet)
Dent concludes by saying "If you thought 2008 was scary, 2010 to 2012 will be the greatest economic and banking crisis since the 1930s. You must be prepared in advance to survive this most difficult season. Do not accept the proposition that you cannot, or should not, take steps to guard against losses. As an investor, it is your money, your future, and your responsibility to protect yourself in the best way possible and there will be the greatest reward for those who do prepare during this once-in-a-lifetime 'great sale' in financial assets."

How Best to Invest and Prosper during the Tumultuous Times Ahead (according to Dent)

1. Early to mid 2009:
a) Sell stocks, except commodity and energy sectors.
b) Allocate between commodities and T-bills or money markets and /or safe currencies.

2. Late 2009 to mid-2010:
a) Sell commodities and commodities and energy stocks.
b) Allocate 100% to T-bills or money markets and safe currencies.

3. Mid- to late 2010:
Start to allocate to 30-year Treasury bonds only after their yield begins to spike.

4. Late 2010 to mid- 2011:
a) Allocate to 20-year corporate bonds when yields go to extremes.
b) More conservative investors should focus on AAA corporate, more aggressive investors toward BAA.
c) All investors must recognize, however, that even high-quality bonds will be in question as to their viability, given that the downturn between mid-2009 and 2012 is anticipated to be more extreme than anything we have seen since the early 1930s, mid-1970s, or early 1980s.

5. Mid-2011 to mid-2012:
Allocate to long-term municipal bonds when yields seem to be peaking (high-tax-bracket investors).

6. Mid- to late 2012:
a) Aggressive/growth investors: allocate majority into Asian stocks and lesser into U.S. multinational, technology and health care, with minor allocation in long-term corporate, Treasury, or municipal bonds.
b) Conservative investors: focus largely on 10- to 30-year Treasuries and 20-year corporate AAA bonds, with minor allocations in multinational, health-care, and Japanese stocks.

7. Late 2011 to early 2015:
Look for selected opportunities in real estate (small condos and starter homes early on; vacation and retirement homes later; trade-up homes by 2015).

8. Mid- to late 2014:
Aggressive/growth investors: allocate more to leading stock sectors such as China, India, health care, multinational, technology, and financials on a likely short-term correction between late 2013 and late 2014.

9. Early to mid-2017:
a) Sell stocks in all sectors.
b) Convert largely back into long-term bonds and, to a lesser degree, into T-bills or money markets.
U.S. Treasury Sales Could Collapse Leading to End of U.S. Dollar as Reserve Currency
Much More HERE

11 comments:

  1. You have no proof this is going to happen. Where do you guys come up w/ this comedy? More importantly, what inside you thinks you are qualified to spout out this bs advice?

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  2. Its called a trend..sort of like I can bet your going to get old with absolute certainty.

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  3. I just have to shake my head and laugh at people like the first commenter.
    Honestly, if you think the opposite is true, then where's your proof it isn't going to happen? What makes you qualified to detract from trained economists who say it is, who base their analysis on real world data from reliable sources? Also, do you know how to follow the links provided at all?

    Hey dummy, go get a few more cc cards, and while you're at it how about another SUV you can barely afford at your 8 dollar an hour job, and why not throw in 3k worth of bling rims at 21% interest. Clown.

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  4. >You have no proof this is going to happen.<
    In order to understand what is going on you have to answer yourself several questions. What is associated with 1913 & 1971. What is money. Then you have to read the famous Thomas Jefferson's phrase several times starting with "If the American people ever allow private banks to control the issue of their money...." you will finally get it. I personally think that the steps in the article are not right. That is why everyone should think for himself.

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  5. Agreed - fiat money in T-bills or other 'safe' fiat currencies and money markets? 30-year treasuries? No thank you. I love Schiff's comment about that. 30 years? I don't have faith in looking out 30 days .... ?? MM/T-bills can be wiped away in days literally. Global fiat money collapse is not a maybe. All fiat currencies historically have always failed. It is obvious that our owners want to destroy current fiat currencies in favor of a new global currency via the "Bank of the World." Then they have total, absolute control of your life.

    Selling stocks is a no brainer, but the rest is not great advice.

    Better advice for the average person is to assume that a year from now you will be unemployed and without any substantial income, prices on food/energy items will be 3x+ what they are now. If you live off an annuity, SS, or any fixed income it will become near worthless.

    Do whatever you can to become less dependent on others. #1 store food and water. There are a lot of things you take you granted day to day. Look at those as temporarily available. Prepare for the worst. If your income is gone, if prices are skyrocketing, if your bank is locked down, if the grocery stores are locked down, if water/electricity are gone, how long can you survive? Most people are only prepared to last about a week. The government won't be there for you - they will be bankrupt. No blocks of cheese. No soup lines. Putting basic emergency measures in place is not very expensive or difficult. Instead of those bling rims invest in $1000 of canned food today. You can live off off $3 a day in canned, nasty beans, etc. No gourmet meals :( - just survival. Gold/silver is fine too, but they are hard to eat.

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  6. hay guyz CNN saidz the economies getin bettah so itz true lofflez!

    *rollz eyez*

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  7. sorry but T bill,bonds are all CRAP! go for the GOLD AND SILVER! sheesh!

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  8. Let us return to the basics that saw our grandparents through a similar catastrophe.

    Gather your family about you, be kind to your neighbors. Pay down as much debt as possible. Hold reserve cash for emergencies and take the time to purchase a little silver and gold currency. Learn to grow a small garden, perhaps learn to raise meat rabbits in a small space. Put a bit of food storage aside.

    In other words, become a little self sufficient.

    The men who preserved their families wealth and property were not attempting this type of market timing, nor would they have been successful most likely..

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  9. Gather your family about you, be kind to your neighbors....

    Kind of hard to be kind to my foreign neighbors. They hate me.

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  10. hey Watcher,
    Very well said! You are very smart! Best post yet!!!!
    James

    ReplyDelete
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