Commodity prices rising, US dollar weakening, long dated bonds weakening aka interest rates higher---- What should I do in real life to take advantage of this? Should I go move to a foreign country while the $ is high and buy some property? Should I take out massive student loans since the FED is deciding to go to QE infinity and all the debt will be wiped out anyways? Should I get the f out of America? If so, which country is safe from the US $ bubble economically?
You have been brain washed ashes by gold coin and bitcoin salesmen. the US is the envy of the world and the leader of the technology and economic of the future. Don’t bet against it.
I'm American and my home will always be USA, but if one has the inclination and means, I think it's a nice luxury to spend some extensive time abroad. The last few years, I lived a few places around Asia. I liked Vietnam the most. Lots of expats from Europe, East Asia, etc. Pretty easy going place if you aren't afraid of motorbikes. I'm not wise or versed in real estate, but heard plenty of bragging from friends who are currently making a killing in real estate there. From what I've read and been told, it's the fastest growing economy in Asia. Definitely noticeable around Saigon, as there is heavy investment from Korea, Japan, China, so on... Met many expats from US, UK, France, Italy, Australia, Korea, Japan, China/Taiwan, and also a couple from Persia and the Baltics. Most of the expats I knew there were working in startups, finance, film, or e-commerce. USD goes extremely far. Felt like I was living like a king for a fraction of what I'm used to paying in tier 1 US cities. If you're a single male, the women are amazing, and you could certainly find a great one to settle down with. I don't have any worry about the future of America. Though after extensive time abroad, I'm always a bit awestruck the day I get back and remember how much bigger/heavier my countrymen are, on average. We got some pretty big boys and girls here.
Very interesting topic. I agree with the view of commodity prices rising (the GSCI/SP500 ratio looked very interesting). But I don't agree with the view of interest rates going higher. Normally it should work like that, of course, but nothing is normal in the finance world now. Hiking rates higher means going bankrupt with such a debt. And there won't be such decision. As long as USD will be the trade currency of the world US will stay alive with it's debt. There were propositions to use other currencies - Libia was a first country that wanted to settle oil in gold, so the "democracy" came to them. There are other plans to do so, especially from Russia, China and Saudi Arabia. Doing so, or using international crypto to settle international trade will show the real value of dollar, which is none. But till that time FED can make QE after QE after QE pumping exchanges and buing back notes, robbing other economies in the meantime. So if there will be any crisis, it would completely change the functioning of financial world. But answering your questions. If you have so clear view then you can try to make a lot of money from it using some derivatives. If you think the stock is a bubble (and of course it is) and can't go higher on that print money (which is not easy to say) then use options to short it. If you think commodities will go higher use futures to long those with backwardation, and ETFs or ETNs or stocks to long those with contango. If you want to invest into properties why don't use REIT ETFs and diversify this. You can also construct some other ideas if you have view how world will look like. There is a huge eco lobby now, the big groups of interest are fighting. If you think that the "green energy" lobby will win this then why not go long something connected to solar or wind energy (for a long time) or thinking about uranium ? Uranium is still rather cheap, it's necessary to run nuclear power plants. If you check how many nuclear plants it's builded now in China, how many plants Japan want to run again, what are other countries plans for next 10 years, then it's very probable that there will be increased demand for it. The supply is weaker and weaker, the costs of extraction is now much higher then the market price. A lot of possibilities.
We would bomb you for that, but no need, we'll just keep burning CO2 and your country should be under water in about a week.