Re: US debt and long-term savings strategy - what do you think ?

On Mar 28, 3:32 am, "Amamba" <e...@xxxxxxxxxxxxxx> wrote:
Hi,

I am not a "real" investor, and in retirement savings I so far
preferred to go easy way and invest in index funds.

However, the more I think about the state of US economy the more I
wonder what's to come in the next 20-30 years.

The two main trends that I see are (1) a huge trade deficit and a huge
debt this country has, and (2) outsourcing of majority of "middle-
class" job ( first manufacturing, now engineering, software
development, design, I even heard of x-rays being sent overnight to
India to be read by a US-licensed radiologist - although this may be
just a rumor)

These trends, in the long run, will probably result in a major
inflation and devaluation of USD (seems to be the only way to "write
off" debt). And the country that doesn't produce will have hard time
getting out of nosedive. I don't think there'll be a Great Depression-
like crises, more likely a long series of downward turns with some ups
or flats in between.

How would you invest, in the long run, under such conditions ?

This article is just for you:

http://www.financialsense.com/fsu/editorials/andros/2007/0323.html

"In conclusion, The opportunities are enormous, as are the pitfalls.
For the smart money it will be challenging but very very rewarding.
The economies of the world will continue to grow (or boom) as at this
time they are well funded into the forseeable future. There is more
money than is imaginable sitting in the worldwide banking systems
chasing any opportunity and the markets in general will rise, but
suffer unbelievable setbacks as markets crash after getting ahead of
their fundamentals. When they become bubblicious from the firehoses of
hot money that races to them chasing them as they emerge. Plunge
protection teams stand at the ready throughout the world to address
the "Fingers of instability" such as housing, mortgages, and Nasdaq
2000 to name a few. You can invest in these broad social and economic
trends or be killed by them..."


What is says is that there are lots of money in the market to invest.
The current methods of investment (real estate property, stocks) do
not work anymore -- all the easy avenues are already exhausted. Now it
is the time for the new manufacturing technologies and for the new
products. This is where the money will be invested. One needs to be
prepared for such abundant opportunities -- better go to the
university and get a BS degree (or even better a PhD) in some hard
core physical science. Keep yourself healthy. And you will eventually
float on the top of the things (with the probability 95%). All the
best. (Do not listen to the old farts. They will stay where they
belong -- in the past.)



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