Hyperinflation imminent? Time to get out of the dollar

[abskebabs]

Hi everybody, I think I'm usually pretty level headed when dealing with financial news and how it impacts on my own decisions. I do short term stock trading in a dollar denominated account on the American stock exchangs.

 

I have a system that I apply to this trading, so that I only trade stocks short term in sectors that are performing well for the stage the economic cycle is in(e.g. the current recession), unless I decide to start short selling(though I admit I've never actually done that before), then I would do the opposite.

 

The account is dollar denominated however, and strangely in the current situation, I find myself reluctant to talk about this with my family, so I thought I would at least post about it here. Do you think we are in for an era of dollar hyperinflation currently? This is causing me a little anxiety, and even though I can still make money on the market if I'm actively trading I'm thinking of getting my money out of this dollar account, and perhaps buying up some hard commodities like gold or silver.

 

What would you do in my shoes?

[npts2020]

IMHO if you are not already out of the American stock market it is already too late if the money invested short term. Mostly what you ask is dependent on the time frame of the investment. Eventually the American market will come back, its just a matter of how long it will take and how big of a hit you can take in the meantime. Careful investment will still yield returns over the long term but I look for pretty rocky going for at least a few months after how this is going to get sorted out is decided. Keep your eyes on the proposed "bailout" if it makes sense to you things are probably ok but if it is so complicated as to be incomprehensible, watch out, the "cure" might be worse than the disease. The initial proposal seemed like a sure way for taxpayers to be out of a ton of money with no accountability, doing nothing would be better for most of us. Dont know if this helps you any, but thought i would try. My own opinion is that the economy will come back if steps are taken revive it with sustainable manufacturing and business practices but it may take a couple of years.

[john5746]

What would you do in my shoes?

 

Stay in the market, please stay in the market. I'm begging you, please.

[Mr Skeptic]

A fluctuating market is the best time to make money on stocks. It is also the best time to lose money on stocks.

[Realitycheck]

Hi everybody, I think I'm usually pretty level headed when dealing with financial news and how it impacts on my own decisions. I do short term stock trading in a dollar denominated account on the American stock exchangs.

 

I have a system that I apply to this trading, so that I only trade stocks short term in sectors that are performing well for the stage the economic cycle is in(e.g. the current recession), unless I decide to start short selling(though I admit I've never actually done that before), then I would do the opposite.

 

The account is dollar denominated however, and strangely in the current situation, I find myself reluctant to talk about this with my family, so I thought I would at least post about it here. Do you think we are in for an era of dollar hyperinflation currently? This is causing me a little anxiety, and even though I can still make money on the market if I'm actively trading I'm thinking of getting my money out of this dollar account, and perhaps buying up some hard commodities like gold or silver.

 

What would you do in my shoes?

 

If I had been in the market when the war started, I seriously probably would have invested in gold. I knew this was going to happen. I told one of my best friends to expect a long, protracted trading range. However, it's made quite a run. Can't say much about what to expect other than that it probably won't go down much till things get better, so you could probably count on it as a hedge. Remember that gold stocks typically outperform gold itself. Short selling always leaves this toxic taste in my mouth.

[iNow]

Yeah, but with all of the money you can make, you'll be able to buy some really fine champagne to rinse that taste away.

[Realitycheck]

This guy on CNBC today, from Cabot Money Mgmt., predicts gold to reach 2000. Given the current environment of poor economy with the Fed predicted to start lowering interest rates again, despite inflationary pressures, this is not entirely unreasonable to expect people to continue fleeing to the safe haven of gold. 2000 does seem a bit farfetched though.

 

http://moneycentral.msn.com/investor/market/top10industries.asp?Symbol=GOLDINDUST&Industry=Gold

 

This one, Royal Gold, looks like it has some potential.

Edited October 7, 2008 by agentchange

[Realitycheck]

Royal Gold up 6 points in 2 days from 34 to 40. Read em and weep.

 

http://moneycentral.msn.com/investor/charts/chartdl.aspx?D5=0&D3=0&D4=1&ViewType=0&CP=0&PT=1&CE=0&PeriodType=20&ComparisonsForm=1&Symbol=RGLD&&ShowChtBt=Refresh+Chart&DateRangeForm=1&C9=2&DisplayForm=1

 

http://articles.moneycentral.msn.com/Investing/ContrarianChronicles/danger-the-wipeout-is-still-ahead.aspx?page=1

Edited October 10, 2008 by agentchange

[ecoli]

I don't think we'll see hyperinflation. But we will see inflation with the credit expansion the fed is trying to push through. Also, if we happen to get through this, look for another major bubble bursting sometime in the near future.

[Realitycheck]

Royal Gold promoted on CNBC.

 

http://video.msn.com/?mkt=en-us&brand=money&vid=476de64c-70a8-406b-8d87-922c9aca9d61&playlist=videoByTag:tag:money_top_investing:ns:MSNmoney_Gallery:mk:us:vs:1&from=MSNmoney_ticker&tab=s216