Replies to post #15023 on General Stock Ideas

[gfp927z]

Bigworld, Yes, things have gotten pretty nuts in this country. The US has always been on the delusional side, thanks to the la la land of TV and movies, but these days it's been institutionalized to the point of zombification.

I remember the famous quote by CIA Director William Casey - "We'll know our disinformation program is complete when everything the American public believes is false"

[gfp927z]

Bigworld, Fwiw I decided to start moving into a more conservative asset allocation -

Stocks - 25%

Bonds - 25%

Gold - 25%

Cash - 25%


Looking at this national debt chart (below), I figure it's time to start preparing for the inevitable, even though the day of reckoning isn't necessarily imminent.

My allocation model requires maintaining a minimum of 20% in stocks, 20% in bonds, 10% in cash, and 10% in gold. So by itself that establishes 60% of the portfolio, and the other 40% is the portion can be changed as conditions warrant.

After my past 'misadventures' (to put it mildly), the basic idea is to provide a structure that helps avoid the many pitfalls, and minimizes the emotional aspects of investing, while still maintaining some degree of flexibility. The allocation parameters I came up with are as follows -


Stocks - 20% minimum, 60% maximum
Bonds - 20% min, 60% max
Cash - 10% min, 50% max
Gold - 10% min, max ?


I figure that many of the risks we face as investors can be minimized by simply following an asset allocation model and by using broad ETFs, combined with avoiding active trading, timing the market, etc.

But having avoided these obvious pitfalls, we are still faced with the following chart and its implications (dollar crisis, SDRs, etc) -