SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: russwinter who wrote (22516)11/27/2004 5:36:21 PM
From: glenn_a  Read Replies (1) of 110194
 
It sure appears we're on the verge of something "breaking" in the global financial system.

Thanks again for your and others on-going real-time reporting and analysis of unfolding events.

Your question of "How to identify the final phase of the Unfolding Train Wreck?" is provocative. Not being sophisticated enough to piece together this situation, here's how I'm preparing for the inevitable:

1 - Deleverage. Pay of debt. Shun investments dependent on continuing availability of cheap consumer credit. Covet high-quaility liquid assets in strong currencies (currently 53% of my portfolio in CDN T-bills).

2 - Hold assets in strong currencies. See above.

3 - Keep a core holding in natural resource plays in deference to the secular trend of a declining US$, the China/India story, etc. However, prefer liquidity in strong currencies to heavy bets on natural resources at this stage. Strong possibility of higher real interest rates and consequent correction in inflated asset valuations across the board. [currently hold 15% in junior O&G stocks (down from 22% a month ago); 25% in physical bullion and junior precious metal stocks].

4 - Strong possibility of severe monetary disorder on the near-term horizon exposing serious vulnerabilities in the global banking system and quasi-banking institutions. Again emphasizes attractiveness of high-quality liquid instruments in strong currencies and secular attractiveness of precious metal related investments.

5 - Thus positioned, relax, take a break from the markets, focus on other interests, and await exceptional valuations in assets that will inevitably result.

Nothing brilliant here. But a "best attempt" from a small fish in the pond. :)

Regards,
Glenn
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News