The Oil Drum

144 comments on DrumBeat II: October 19, 2006

Comments can no longer be added to this story.

Electric Rex on October 19, 2006 - 8:17pm

RussianCrude: 401k: good or bad idea? That really depends upon what your situation is. My advice is to get out of debt as soon as you can to avoid becoming an endentured servant to the money changers, oops, I meant banks. (Fractional reserve lending and Uncle Ben make my blood boil!)

If you have any debts, pick the one with the highest interest rate, pay that one off first and then pay off the rest of your debts in decending order of interest rate. If you don't have any debt, go for Treasury Inflation Protected Securities (TIPS) if you're a conservative investor but only for the medium term. These may just become worthless if the govt. can't pay it's debts. Otherwise pick up as much silver and gold as you can. That's just my humble opinion and please note that I'm a serious Doomer. If you ask 10 different people you'll get 10 different answers.

Comments can no longer be added to this story.

elwoodelmore on October 20, 2006 - 8:59pm

i'm not that bullish on tips they are a bond just like any other bond bid down by all the excess money chasing after these so called safe govt securities it just dont seem to me they pay a sufficient ( inflation ) premium to be of any value and dont forget the inflation component of these bonds is the cpi and i hope you dont think that actually represents inflation

Comments can no longer be added to this story.

Electric Rex on October 22, 2006 - 5:10am

I'm not too bullish on tips either. That's why I say only for medium term (1-5 years) and only for conservative investors. Many people don't have the risk tollerance necessary to ride through the undulating plateau that lies ahead. I think the bumps and swings will be quite large in silver and gold. I'll just be buying during the dips in the 200 day moving average.

I realize that these bonds are related to CPI but when the inflation hits they'll still be better than 10-year notes. I believe gold and silver will be the best stores of value in years to come.

Again, 10 different people will have 10 different answers. I've learned a lot from the opinions of others here on TOD. May I ask what you think are going to be the good investment vehicles in the furure elwoodelmore?

Comments can no longer be added to this story.

The contents below are paid advertisements. Their appearance does not imply an endorsement by The Oil Drum.

“To be thrown upon one's own resources, is to be cast into the very lap of fortune; for our faculties then undergo a development and display an energy of which they were previously unsusceptible.”

—Benjamin Franklin