Hearing end of the world from an optimistic person like me is a difficult thing to digest. But this is what i read recently and have been reading many of it.
There are many more such articles which talk about end of the world and about how financial markets around the world will freeze in case the things continue the way they are continuing.
Some of the things which are terrifying
- > 2 yr Germany treasury notes at negative yields.
-> 33 yr and 10 year US treasury notes at 50 yr or record lows.
- > US dollar was a few years back was considered toilet paper and is now rallying against almost all currencies in the world.
-> The speculative money going into commodities is running away with Brent crude at sub 100 and Nymex crude at 83.
-> Unemployment rate soaring across the world.
-> Industrial output and PMI numbers indicate severe contraction in China, Asia, Europe and many places.
-> Debt to GDP numbers hitting the roof in many countries and chance of a series of sovereign defaults.
-> There are so many predictions of dooms day around the net and very few about turnarounds.
Some of the craziest things i have read.
Dow to go to 400 over the next few years.
Dow Jones to hit 3000 by Harry Dent.
Gerard Celente says buy a gun to protect your family against desperate people in search of food and money.
The article i have shared above says we just have 6 months to profit from any downfall and sooner or later markets will be freezed with no shorting allowed.
Oil prices will go through the roof, Gold will be the currency.
There are very few people who write on how to survive a scare they have been talking of and even if they do hardly apply them in their lives.
Lets look into some wild and scary imaginations we need to do.
- > A human needs 3 things to live – Roti, Kapda and Makaan. So if there is going to be total hay wire you need to store food , clothing and stay in a locality where social unrest cannot occur or go buy a small property on an unknown island. ( I stay closer to Madh Island need to think on this ). By the way nowadays we need oil too so keep some barrels of crude too as that can go crazy. Remember the 200 dollar crude oil prediction ? Peak Oil.
- > Pay of your debts is the standard thing to say. But if there is going to be a crash and freeze of markets why should i pay my debts rather take debts and runaway ( Find a banker who is ready to give you a few crores )
-> Buy Gold/Silver and Bonds - It stores your purchasing power. Well Gold will give you purchasing power but if everything is going to freeze it will mean world will go back to barter system. So why buy gold, buy a farm which produces grains. You would get something for exchange of your grains.
- > Keep hard Cash !! – First thing you do is keep hard Cash. Remember the RBI guarantees only 1 lakh of your money in Fixed Deposits. ( I can say that coz i had a hard time when some money got stuck in a co-operative banks and even when RBI took control you need to write them and beg for your money back. Finally a PSU bank did a takeover and got the money back with interest ). So for keeping the hard cash you would need to buy a big safe and store it somewhere safe. Remember how people ran to ICICI bank ATMs in 2008 ?. A banking system can collapse if every body removes the deposits so go be the first one to do so 😛
- > Sell your Real Estate and Business – The biggest part of the net worth for Indians is Real Estate and Business premise. In many cases its almost 90% of your networth. Does your equity portfolio make a very big difference in your networth. ( Remember in 2008 selling commercial real estate became a pain. Remember the sluggish real estate market of 1995-1998 ? )
- > Buy Put Options every month as insurance – Havent you read the Black Swan and Fooled by Randomness by Nasim Nicholas taleb and hope when indices collapse the exchanges dont freeze and you get your maturity amount
- > Google on 2012 mayan calendar and how to survive it. There are lot of gears which will be sold to you. Buy a few of them like a Cold Weather Jacket and so on.
There are lot many things which you can do. Mind you if it crashes the Banks will be closes, Jewellers will shut and everything hay wire with social unrest.
So if its gonna be so bad and we just have 6 months why the Hell to worry. Enjoy life go spend shit loads of money you have saved and maybe that will pull the economy up
Remember US doing the same in 2008 they opened their banks with free money gave free vouchers to citizens and increased spending and bang they are alive for last 4 years and Dow Jones has doubled from 6500 to 13000 It seems now its time for Europe to start printing money as thats the only way out else every other way leads to terror !!
Meanwhile any one who tells you Globally things will collapse, Grexit, Spainshit, Portugalistic , Sovereign defaults, Bank runs ask him whether he has done at least two of the above logical steps ? If yes he believes in what he says !! I like Gerard Celente who said buy a gun everyone else is just trying to profit from the scare.
Anyways i continue to remain optimistic for the future , Markets, Finance and World finds a balance to survive and Mankind too:). On the market crash i am already down 15% so its already a crash
No Situation is Permanent. ye waqt guzar jayega
Enjoy your weekend,