Saturday 27 August 2011

Collapse of the Dollar - A Mathematical Certainty???

Collapse of the Dollar - A Mathematical Certainty???

Take a look at this video:

The video presents a very interesting "Black Swan" moment.

After 2008, After Lehman Brothers, it is difficult to totally ignore the above video as something that's "Impossible".

Obviously, if something of that sort materialises in reality, the share markets will go into a tailspin. A true and total disaster. Globally. And, when the US catches a cold, all of us get a fever.

How do we prepare for it? Really speaking, we can't be fully prepared.

Some quick suggestions:

  • Review your Asset Allocation.
  • Ensure that at least a certain portion of your total assets are allocated to real assets rather than paper assets. Some potential ideas could include
    • Precious metals like Gold, Silver, Platinum, etc.
    • Agri-Commodities or companies that invest in Agri-commodities
    • Companies that derive a strong percentage of their revenues from domestic markets (Especially those who have taken large dollar loans, as when the dollar goes for a toss, repayment will become child's play)
    • Real estate in high growth economies like India, China, Brazil, etc. Certainly not in US, West Europe, etc.
  • Pray

As the video clip says,

  • While it is possible to ignore reality, it is impossible to ignore or escape the consequences of ignoring reality.

Take care!

Regards,

N


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