The US Dollar: The Worst Investment to Make??

[s2h]

So believe it or not I actually have friends who don't shoot gear and talk about there meal plans all the time..lol..I have several close friends which several are part of our golfing group(yes I golf and semi poorly...but I have above average income and I'm white..so its required)...

One is a V.P. for a major investment company...one is a self made oil tycoon...if that's the correct term for him..cause he doesn't look the part..and I have another outside of our golf group that is a former Sr.V.P. of marketing for a major retail chain...so these guys are all very well educated with degrees from Duke..Notre Dame and Texas...so no dummies..

The latest discussion has been the downfall of the US dollar and its position to fall out as the marked leader of global money..so being that everything is based off the US dollar...

I'm not uneducated but I'm def don't have a masters in finance or anything that allows me to have deep working knowledge of topics of this nature..but. do have good instincts and being a process thinker I tend to think through a group of ideas and grasp what is the best decision..most of the time..I'm also not very trusting when it comes to financial advice..

So the over all thoughts of my group of friends is that investment in US companies and anything directly effected by the US is not a good idea...exceptions being solid assests...most of them are for going away from the stock market or any type of investment of that nature...

Most are aggressively pursuing real estate espc land as a investment...of course there liquid assets are such that 5,6 even 7 figure purchases via cash are possible...

The next topic was metals...gold...silver..etc..with the feeling that gold isn't that good as silver...being that silver has become used more in industrial purposes...and of course oil...one guy has gone from making 80,000 year 10 years ago to owning a private jet now..all on his own with oil...

Other considerations are investing in international companies that show long term stability in more stable industries..like the grocery buisnes...people have to eat...period...health care is another...people have to and will go to the doctor or hospitals...one of the guys made a quick and large turn on some stock in a medical pot company in Colorado when they passed there medicinal legalization laws...

Thought's or comments...I'm not trying to say any of these points or decisions are mine or I would follow them...just find the topic interesting to say the least since all my money is tied up primarily in US investments..

 

[LAM]

can't argue with anything they stated.

any investment in US firms that are heavily invested in fiance is a loser for sure. QE out of the FED is proof positive of the complete failure of the US financial sector, the largest welfare queen the world has ever known.

other losers are places like Yum Foods and other firms that sell cheap food stuffs and non-priority consumables. with the loss of equity in US homes and the credit being cut off US consumption will be down for years until US household debt returns back down to the historical level of 50% of US GDP.

 

[s2h]

i'm meeting with my financial guy friday to discuss some options..of course that will be while playing golf..which can be a good or bad thing..if the ball goes where i want it to i will pay better attention..if the slice comes out i might go broke in 2 years..

i'm just really concerned due to the fact that i want to retire by the age of 50..i'm on track for that but dont want to be 50 and have to start over or even work part time etc..i need more golf time

 

[LAM]

i'm meeting with my financial guy friday to discuss some options..of course that will be while playing golf..which can be a good or bad thing..if the ball goes where i want it to i will pay better attention..if the slice comes out i might go broke in 2 years..

i'm just really concerned due to the fact that i want to retire by the age of 50..i'm on track for that but dont want to be 50 and have to start over or even work part time etc..i need more golf time

just beware of any stocks in company's that are heavily vested in financials. most of those firms have negative equity right now but due to the allowance of off-balance sheet reporting the books have been lawfully cooked.

 

[UA_Iron]

This is why you invest in index funds. If you invest in any single stock you are betting on that company doing well. It's not a way to get rich overnight, but typically the DJIA average beats most people's investing returns on a yearly basis. Low cost index funds, tax advantaged funds... look to vanguard funds.

Oil prices will stabilize as US production increases - within 5 years I would not be surprised if the output of US oil is higher than that of OPEC. OPEC is in a tough position as they cannot produce more oil right now as the price per barrel will plummet on too much supply. The oil market is rigged in some offshore entity anyway so who knows...


Don't be emotional about investing, if you believe all doom and gloom you'll freak out on a daily basis. Be careful not to be poisoned by the success of your friends, the same set of circumstances they grew their wealth off of will probably not happen to you.

 

[LAM]

Oil prices will stabilize as US production increases - within 5 years I would not be surprised if the output of US oil is higher than that of OPEC. OPEC is in a tough position as they cannot produce more oil right now as the price per barrel will plummet on too much supply. The oil market is rigged in some offshore entity anyway so who knows...

have to remember they are much different quality. oil derived from tar sands is low quality as compared to sweet crudes which have far less sulfur content.

 

[UA_Iron]

have to remember they are much different quality. oil derived from tar sands is low quality as compared to sweet crudes which have far less sulfur content.

Well, this is true but the final output quality is identical - it just takes more steps to get there. Steps in the processing are expensive, but make economic sense when OPEC and other oil exporting cartels raise the price per barrel by manipulating output.

 

[heckler7]

US is supposed to be the world leader in oil in 5-7 years with the shale oil boom. I know nothing of investments but I would presume tin would boom with the growth of electronics, all circuit boards are cover with it

 

[LAM]

tar sands mining almost uses as much energy as it produces. which means it's not a very efficient means of energy production in the long run. the only ones that are truly going to benefit are the oil company's, with the environmental costs far outweighing the benefits to the population.

with razor thin profit margins the tar sands producers don't make much in profits. my gf's 2nd oldest sister works for royal dutch shell, I'm going up to Calgary next month to set up her SOHO computer network going to try to check out what they are doing up there.