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QFsurvival
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Joined: September 11th, 2008, 8:57 am

When deflation going on, what should I invest?

March 27th, 2009, 7:39 am

Yup, that's the economic trend I forsee at least in next 6 months. And I am expecting the worst scenario coming in the end of this year then probably slowly bounce back. Current market moves are just too fast and make me worried. Within the fluctuation, what is the best strategy should I take to make some quick money and avoid big loss if the worst suddenly come? Should I start long some USD assets? I believe when rest of world follows usd fed to print money, dollar is only asset worthy to hold. What your opinion?
 
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Vegawizard
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Joined: November 27th, 2006, 10:46 am

When deflation going on, what should I invest?

March 27th, 2009, 8:02 am

In deflationary environment you want to be long cash & liquidity, the value trades will present themselves, patience will be your best asset.
 
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Aash
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Joined: January 14th, 2005, 7:12 am

When deflation going on, what should I invest?

March 27th, 2009, 11:44 am

QuoteOriginally posted by: QFsurvival I believe when rest of world follows usd fed to print money"when" or "if"? What makes you so certain that a country that doesnt have an expensive bailout program to pay for would start printing money?
 
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ppauper
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Joined: November 15th, 2001, 1:29 pm

When deflation going on, what should I invest?

March 27th, 2009, 1:03 pm

QuoteOriginally posted by: QFsurvivalI believe when rest of world follows usd fed to print money, dollar is only asset worthy to holdIF that happens, you want to be holding either gold or real estate.
 
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paulohsg
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Joined: March 30th, 2009, 3:32 pm

When deflation going on, what should I invest?

March 30th, 2009, 7:49 pm

I don´t think usa will have deflation anymore.....since it started to print money the inflationary pressure is something that will happen.....the day tim geithener anounced the plan the TIPS had a huge movement......i like going long in any inflation trade and short usd agaisnt a lot of currency (BRL specially)....if there are a country that will do quantitative easing we should short its currency and go long on inflation
 
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list
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Joined: October 26th, 2005, 2:08 pm

When deflation going on, what should I invest?

March 31st, 2009, 12:14 am

The current situation is pretty much unstable. I have a feeling that we will not observe a pure inflation or deflation. It rather began restructuring in all goods and services prices. On the other hand it is a fat chance that printing will stop when low effect of new measures will be more or less explicit.