Depression in the USA - Deflation verus Inflation

[The Big Ease]

fair post ginshu.
if you are in speculative investments, then time to reconsider.
otherwise, play on...
the world is not falling apart. but PE's are.

good times. now is the time to be eyeing quality companies with excellent prospects and track records of delivering. if they get knocked off, then get stuck into them. you dont get these opportunities very often.

[lakedaemonian]

fair post ginshu.
if you are in speculative investments, then time to reconsider.
otherwise, play on...
[b]the world is not falling apart. but PE's are.[b/]

good times. now is the time to be eyeing quality companies with excellent prospects and track records of delivering. if they get knocked off, then get stuck into them. you dont get these opportunities very often.

I agree, the world is clearly NOT falling apart.

But the financial markets ARE, and in my opinion, will continue to do so until the rot and financial hocus-pocus is removed.

Tangible assets and well managed, sound businesses will always have value.

My opinion is that the value of tangible assets and well managed sound businesses will reset lower in coming years.

I can't help but recall Warren Buffett referring to an airline(usually a horrible investment) In the United States in the 70's selling for LESS THAN the cost of only FOUR airliners in the company fleet.

Maybe I'm too conservative, but I've focused on debt elimination, building cash(or cash-like) reserves, slashing costs, and focusing on cashflow until the dust settles(which I think could be a fair few years yet).

When solid companies likely to still exist in 50 years time are selling at firesale prices like in the 70's I'll dive in head first, but for now, I think cash(or cash-like) is king.

The only thing I'll even consider buying in the short-term on a dip would be energy, PMs, and maybe Ebay.....the world's biggest pawn shop.

[The Big Ease]

fair post ginshu.
if you are in speculative investments, then time to reconsider.
otherwise, play on...
the world is not falling apart. but PE's are.

good times. now is the time to be eyeing quality companies with excellent prospects and track records of delivering. if they get knocked off, then get stuck into them. you dont get these opportunities very often.

Posted 01/2008

I want to join the chorus of people claiming they picked the market and were right, so you should subscribe to their views until the end of time and suspend your own logic.

I told you it wasn't the end of the world and it's not.
Forget about the 60% fall in equities prices, I was right about the first point and I'll be sure to include it in all the sales and marketing material when I ask you to subscribe to my wealth of rehashed wisdom to ensure you don't miss the recovery.

Come on, I will even give you a ten% discount if you order now. Hurry, hurry while stocks last.

This bear has been a wonderful lesson. I had some BIG losses but have positioned myself well to make it all up and more.