capital protection plan - what is it?

[rsh01]

Hi all,

I have been thinking about this subject for a long while, and though there are some sporadic comments on a few threads, there doesnt appear to be much talk about it - on here or elsewhere. And surprisingly so in such unprecedented economic times.

As we know, the global economy is ****ed, fiat money system is flawed (imo), and the vanilla investments are either being inflated away or are on the whole returning in the negative %s. Less about capital accumulation, more about capital protection. Imo there is a possibility of some major fiat currencies being devalued, perhaps if the Eu folds, and in turn possible bank holidays and other capital controls may follow. Even if you're pro fiat money, or/and an eternal optimist (fantasist) and believe the system can be repaired by ctrl + p'ing, you may have thought about protecting your cash from inflation, and your investments from negative returns. If so then this thread may be of interest.

I am keen to avoid lengthy debate on what you may or may not think will happen, but i do understand that these views will probably influence your capital protection plan (if you have one), so providing a context to your plan is obv welcome. This thread will hopefully provide some food for thought, and also i am just interested in how many other people are as concerned as me, & how you are planning in light of those concerns. Also i am intrigued to know what sources you use for info? I will list some blogs at a later date, ZH is one but its very partial, as are most of the perma bull PM blogs - as everyone is pretty much talking their book.

I do not have a finalised plan, but investing in PMs is a part of it. I am currently buying silver, gold is a bit punchy for me. I use weekly/monthly charts for picking entry points. I will also look to buy & hold some foreign currency - prob chf and usd (still deemed as safe havens), and maybe an asian ccy. And I keep the majority of cash in a bank which doesnt have investment banking arm. I am also interested in commodity etf's though i have done zero research as yet. I do not own a property and will not be looking to invest in this area in the near future.

So the main q's:
Whats your capital protection plan? and why (briefly)?
What investments? Pms, currencies, real estate, etfs, bonds? Any others?
What % of your total capital do you invest in these? Do you do any analysis?
Educational sources you use? Books, websites, blogs etc?
Anything else worthy to add, feel free.

(Its inevitable this thread will attract lulz, and i definitely deserve it. However i hope it also generates some interesting discussion on a serious topic. If you think your property, salary, investments, cash etc will perennially inflate then this thread is probably not for you).

Happy trading all.

 

[gedward3]

Have a read of this or get free update emails. Keeps you abreast of whats
happening with some witty writing and keeps me interested in whats
happening with all the ECB and worldwide economies

Macro Man

 

[rsh01]

Thanks for the link. I like his frequent use of the word "b0llocks" in his latest post, I like him already.

 

[Jason101]

Hi all,

I have been thinking about this subject for a long while, and though there are some sporadic comments on a few threads, there doesnt appear to be much talk about it - on here or elsewhere. And surprisingly so in such unprecedented economic times.

As we know, the global economy is ****ed, fiat money system is flawed (imo), and the vanilla investments are either being inflated away or are on the whole returning in the negative %s. Less about capital accumulation, more about capital protection. Imo there is a possibility of some major fiat currencies being devalued, perhaps if the Eu folds, and in turn possible bank holidays and other capital controls may follow. Even if you're pro fiat money, or/and an eternal optimist (fantasist) and believe the system can be repaired by ctrl + p'ing, you may have thought about protecting your cash from inflation, and your investments from negative returns. If so then this thread may be of interest.

I am keen to avoid lengthy debate on what you may or may not think will happen, but i do understand that these views will probably influence your capital protection plan (if you have one), so providing a context to your plan is obv welcome. This thread will hopefully provide some food for thought, and also i am just interested in how many other people are as concerned as me, & how you are planning in light of those concerns. Also i am intrigued to know what sources you use for info? I will list some blogs at a later date, ZH is one but its very partial, as are most of the perma bull PM blogs - as everyone is pretty much talking their book.

I do not have a finalised plan, but investing in PMs is a part of it. I am currently buying silver, gold is a bit punchy for me. I use weekly/monthly charts for picking entry points. I will also look to buy & hold some foreign currency - prob chf and usd (still deemed as safe havens), and maybe an asian ccy. And I keep the majority of cash in a bank which doesnt have investment banking arm. I am also interested in commodity etf's though i have done zero research as yet. I do not own a property and will not be looking to invest in this area in the near future.

So the main q's:
Whats your capital protection plan? and why (briefly)?
What investments? Pms, currencies, real estate, etfs, bonds? Any others?
What % of your total capital do you invest in these? Do you do any analysis?
Educational sources you use? Books, websites, blogs etc?
Anything else worthy to add, feel free.

(Its inevitable this thread will attract lulz, and i definitely deserve it. However i hope it also generates some interesting discussion on a serious topic. If you think your property, salary, investments, cash etc will perennially inflate then this thread is probably not for you).

Happy trading all.

So the main q's:
Whats your capital protection plan? and why (briefly)?

= To hold no cash due to impending inflation - At the current (official) rates cash has a half-life of about 11 years.

What investments? Pms, currencies, real estate, etfs, bonds? Any others?

= I do not trust currencies, etfs, or bonds. I do not trust property, other than in the form of debt.

What % of your total capital do you invest in these? Do you do any analysis?

= 100% in property, family home and investment property.
The only analysis I do is ratio of for sale to sold properties and the ratio of
the amount of properties to let compared to last year.

Educational sources you use? Books, websites, blogs etc?

= If you need any of the above (in any investment field) then you should not be doing it.

Anything else worthy to add, feel free.

= I do not trust any long term cash or cash derivative such as any of the above you mentioned. I believe the only way out of this (for the UK at least) is inflation.
There is a bit of a catch 22 situation with inflation at the moment but once that is sorted the only worthwhile investment will be investment debt.

 

[Jason101]

Have a read of this or get free update emails. Keeps you abreast of whats
happening with some witty writing and keeps me interested in whats
happening with all the ECB and worldwide economies

Macro Man

I did not know macro-was still going, I thought he had retired, I will have to check him out again!

 

[rsh01]

Hi jason,

Are you concerned mainly with capital accumulation / capital protection / ROI (rent income)?
Or a combo?

Do you see correction occurring in uk property market at any stage? It is a bubble, but the bubble can continue for a long time yet.

 

[Jason101]

Hi rsh01

All three, with the backdrop of capitalizing on any future inflation, in the same way that I believe our government will be doing. I.e., predicting the government’s moves to get out of trouble and piggy backing their policy direction. So my belief is that austerity will never work and they know this. So their real only option is to inflate their way out of debt. I.e. In real terms my mortgage repayments (running costs) will have a half-life of 11 years (at the official rate).

If and when the bubble bursts, this is fine- I am still sitting in a nice family home (it’s my home so fluctuating value should not matter to me.:-0) and the value of investment properties -is no real issue, because I am happy with the rent. (Which has an adverse coloration so will normally go up as property values decline.)

EDIT: I think this is one of the most important threads on this site (for UK'ers) at the moment and it should be buzzin not sleeping!!!

 

[rsh01]

Hi jason, cheers for response.

Interesting strategy, and I suppose debt on fixed rate basis then its fairly low risk. I have no idea what holds for the property market, but I wld suspect rental demand will reduce fairly quickly in the event of a UK mkt crash, this wld lead to lower rents. But I assume you have this built in. Also interesting how your happy to stick it all in property.

Cheers for the feedback re the thread, its a shame there isn't more interest, perhaps its a slow mover and will spike when things go t1ts up. I am a bit fed up reading some blogs as they're rarely balanced, hence why I started this. Darktone (I think) posted a link to soundmoney org which showed the rate of increase of population v increase in housing stock....which was similar c<5%pa v increase in mortgage lending which was exponantial.

I will continue to keep the thread ticking over, a bit like a journal, as and when I come across anything of note. I may fire over a few property q's as well.

G/l

 

[ortonstarus]

I think this is very important to every people for securing its capital. You have to save your money and I think you have to fix your money and secure your future. Its very important to manage your capital so for that you have to save your money in the bank they provide your interest on your saving money.

 

[neil]

I think this is very important to every people for securing its capital. You have to save your money and I think you have to fix your money and secure your future. Its very important to manage your capital so for that you have to save your money in the bank they provide your interest on your saving money.

Garbage - if you must use a translator tool at least get a good one