| HYPERINFLATION [message #50978] |
Mon, 08 March 2010 16:51  |
Cut Loss 
Messages: 314
Registered: July 2008
Location: PTA |
Senior Member |
|
|
Seems like we will be going into a very high inflation future. The following might work:
Common alternatives that act as stores of value are:
real estate - actual deeds in protectible land
gold - once the basis of the gold standard
silver - once the basis of the silver standard
precious stones, and precious metals
collectibles, e.g. original art by a famous artist or antiques
livestock (see African currency)
shares
|
|
|
|
|
| Re: HYPERINFLATION [message #50982] |
Mon, 08 March 2010 18:44  |
CFD Trader
Messages: 570
Registered: January 2010
Location: Pretoria,ZA |
Senior Member |
|
|
|
I also have a few properties, but thinking once the recession is out and the market recovers Im gonna sell all and convert into shares....atleast I have control over it then, don't have maintenance or tenants problems and also NOT so exposed to the Hyperinflation regime or redistribution issues like Zimbabwe
|
|
|
|
|
| Re: HYPERINFLATION [message #50995] |
Tue, 09 March 2010 07:49 |
ALSI TRADER
Messages: 54
Registered: February 2010
Location: Pretoria |
Member |
|
|
As far as I understand with hyperinflation share price will go up as well. ZIM stocks used to double in price every day. So shares are as well good hedge
Property will as well go in price and on top of that your bond will lose value fast as well and the rents will go up. So triple score. After hyperinflation is stopped. You sell one property and pay the rest off. Or you can buy more properties during period of HI. Many options out there
I lived in biggest hyperinflation in the world every. Yugoslavia 1993/94. One of the thing was price for petrol was about 5 DEM (German marks) per liter. And was very difficult to buy it. All prices in shops were DEM denominated. So you can stock petrol as hedge as well.
I can go like this forever but those are some key points. Off course if we get there.
ALSI TRADER
http://www.alsi-trader.blogspot.com/
http://twitter.com/ALSITRADER
|
|
|
|
|
|
|
| Re: HYPERINFLATION [message #51004] |
Tue, 09 March 2010 09:36 |
CFD Trader
Messages: 570
Registered: January 2010
Location: Pretoria,ZA |
Senior Member |
|
|
Good, im short on 1 CFD and closed all longs yesterday, going to do some bargain hunting tomorrow or Thursday am at lower levels
U must have some vicious watchdogs or electric fence to protect them then...my dad erect's some pretty nice fences but cattle/goat farming just isn't profitable any more in RSA
|
|
|
|
|
| Re: HYPERINFLATION [message #51046] |
Tue, 09 March 2010 16:42 |
Jane's a QUANT
Messages: 33
Registered: February 2010
Location: Sandy Bay |
Member |
|
|
The 'stock' thieves continue to thrive.In times gone buy it was goats, sheep and cows that were stolen.
Today its even legislated and given a fancy name: BEE or BBEE.
Trading is the most fun thing you can do with your clothes on!
|
|
|
| Re: HYPERINFLATION [message #51091] |
Wed, 10 March 2010 08:36 |
Fosch
Messages: 57
Registered: November 2008
Location: Sandton |
Member |
|
|
|
I do believe there will be hyperinflation later. Is the main driving factor the US dollar prints? Even Warren Buffet asseted to that reality! also when the hyperinflation starts the USD will have to detoriate as well?
|
|
|
| Re: HYPERINFLATION [message #51100] |
Wed, 10 March 2010 09:28 |
contango
Messages: 1322
Registered: October 2004 |
Senior Member |
|
|
We are stuck in a low inflation environment for another year or so at least folks. A lot of people don't really understand what's happened with Quantitative Easing.
Basically the US FED printed and bought a huge amount of treasuries from the US govt. These were onsold to banks, China etc. The coupon rate was exceptionally low. The govt. used the money raised for the bailout programs i.e. it gave it to the banks who in turn were buying treasuries and especially, corporate bonds and equities. The FED also bought a huge amount of corporate bonds. Now we've had a huge rally in equities and corporate bonds and the banks and the FED have made huge profits. All the bailout money has been returned and the govt is buying back their treasuries from the FED, the banks and China. So govt. yields are rising and corporate yields are falling. All the money supposedly printed was mostly in bond form and these have been retired now. The money that was pumped into the system went into the equity markets and the profits generated on corporate bonds etc. There is not some dark pool of money out there that's going to cause hyper-inflation in a year or so. It's already happened and we're almost back to where we were before the crash. So in the past three years a lot of money was lost and a lot of money has been made back. But a lot of the losses have been asymetrically shifted onto the public in the form of unemployment. So now we are sitting with an equity market that is very fully-valued and large global unemployment. Hence the fact that the next few years are going to be very painful and equities and gold etc. are not exactly going to be the best way to make heaps of cash.
Disclaimer:
This does not constitute guidance or a transaction proposal. You should not place any reliance on it when entering into transactions.
|
|
|
| Re: HYPERINFLATION [message #51105] |
Wed, 10 March 2010 09:58 |
Fosch
Messages: 57
Registered: November 2008
Location: Sandton |
Member |
|
|
|
So Contango locally when are we likely to see the hyperinflation? as we are still in the comfortable 6% range?
|
|
|
| Re: HYPERINFLATION [message #51106] |
Wed, 10 March 2010 10:16 |
contango
Messages: 1322
Registered: October 2004 |
Senior Member |
|
|
| Fosch wrote on Wed, 10 March 2010 09:58 | So Contango locally when are we likely to see the hyperinflation? as we are still in the comfortable 6% range?
|
We won't see hyperinflation if the rest of the world doesn't see it. We run the risk of our inflation outstripping other countries inflation because of the whole Eskom debacle but our economy will suffer if the rest of the world suffers too. I'm more in the movie of potentially another rate cut before the end of the year, especially if global economies stumble and stock markets and commodities sell off big time from here...
Disclaimer:
This does not constitute guidance or a transaction proposal. You should not place any reliance on it when entering into transactions.
|
|
|
|
Search
Help
Register
Login
Home
E-mail to friend 
]