Bigworld, Thanks. The McAlvany commentary makes a good case for not having too much in financial assets (stocks, bonds, cash), and for increasing the hard asset side (real estate, land, gold, silver, commodities, etc).
Upping the hard assets definitely seems like a good idea. Along those lines, it could make sense to start counting one's home / real estate as an 'investment class', and include it in the allocation mix. So maybe a 50-50% mix between financial and hard assets, and then as the debt bomb approaches, the hard asset side can be increased. Bonds seem like the most vulnerable class over the long haul. Since the debt bomb timeline may be longer than we think, I figure it makes sense to have all bases covered, but the hard asset side will become more important for long term wealth preservation.
In addition to the rapidly growing debt bomb (34 tril and rising fast), another factor in the demise of the dollar reserve system is BRICS expansion and their planned gold-linked BRICS currency. However it appears the timelines have been slipping, since Saudi Arabia and Argentina have backed out of joining BRICS (for now). It also appears the gold-linked BRICS currency has encountered headwinds from India, since they see it as favoring China too much.
Anyway, I figure we have a period of years before things unravel in earnest, but shifting more into hard assets seems like the logical path.
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