Monday 1 August 2011

Gold etc etc etc - Safe Havens for Troubled Times

The FTA has solicited views on what might be a safe haven for such assets as you have left. Sitting back and watching gold contemptuously dismiss the American 'compromise', as a service to our readers here's a summary of the answers, clustered for ease of review. Never say we don't look after you.


- just about any asset not US based will do - the safest thing in the entire world is surely a bouncy castle (nice one, Izzy !) - education/schools in developing nations - family - invest in human capital: invest in your children - secure white-collar private sector employment with annual pay rises that outpace inflation - t
he most effective flight to safety is the one picked as consensus


- cash - japanese government bonds "but FX hedge is needed!" - Bitcoin - Singapore Dollar - Australian Dollar - US dollar - SEK - Renminbi savings account - New Reichsmark - Swiss Franc - Terra Trade Reference Currency - gilts - SDR version 2 - New Currency (could even be a parallel currency to say the SFr) managed by responsible people [sic]

Equities etc

- global mega caps Microsoft, P&G, Philip Morris, etc - Moody’s 20 Cash Kings - Mongolian mining stocks - Sturm Ruger & Co - The Ocado business model - poundshops


- silver - gold - basic products like food, and drink, internet services - energy - turnips - coffee - chocola
te - rare earth minerals - copper - oil & gas - Dominos Pizzas - Apple iphones - prime London real estate - land


- farmland - cows - mixture of deciduous and coniferous woodland - mixed use agricultural land - assault weapons - tinned beans and digging a deep bunker - safe houses - solar - literally bunkers - food stores - small farm in Canada with (golden) cows - a croft in Sutherland, Scotland with it's own Irn-Bru still and water rights

Broader perspectives, *ahem*

- inflation adjusted stupid-government-insured CDS, with also synthetics and squareds available - human urine - whiskey - Hermes ties - Irn-Bru - dope - grade 1 opiates - Hershey's Nuggets - constant maturity put options on Bove's strong buy calls - doughnuts - beer - booze and wine - creme eggs - teenager-backed bonds - a giant floating mattress in the Atlantic

= = = = =

Well, there you go. No financial advice here, of course ...



Sackerson said...

Trouble with gold bars is the bouncers won't let you in.

Anonymous said...

Thanks a bunch ND! We are indebted to you I am sure.

Timbo614 said...

Great post ND!

... and this is the FT a serious paper! Hah, desperation comes calling.

I just love it - debt ceiling agreement/compromise - dead cat bounce does not get close.

Did you enjoy your (short lived) rally - what happened to the DAX Huh? To paraphrase the BBC "Are you in Germany? Did you see what happened to the DAX?".

As for me, as you know,I have chosen, Water, food, family, Garden, Solar.

"The debt numbers are too big"(TM)

Budgie said...

Did we really deserve Cameron after suffering both Blair and Brown? What have we done to deserve this?

Steven_L said...

Invest on a blog, that way when everyone is unemployed and sat at home skint, surfing the net you can scoop the advertising revenues!

Anonymous said...

Budgie, I think Cammeron, Osborne et al are are gaining the some of the previous shower's characteristics, the number of u-turns would suggest that they have not thought out the consequences before acting, they are starting to dig the already very deep hole, even deeper, they are starting to believe their own spin. The man in the street knows what is going wrong as it affects him , as do businesses, it is even starting to dawn on councils, but because they are stuck a in an ivory tower for long periods they tend to lose touch with reality, Much of the HoC is stuffed with theoreticians, very little time in the "real" world, in as much it is alright in a class room but out in the practical world theory does not always work out in practice.

James Higham said...

Do you charge for this advice, Nick?

Nick Drew said...

what, 'buy turnips' ???

OK that'll be ten grand to you, James: cheap at twice the price

Nick Drew said...

PS, I think 'literally bunkers' in the list above should read literally bonkers ...

Anonymous said...

Hey people,
My mate is a trader on the CME and he's just started this up

He was explaining it to me when I went to Chicago for my birthday but to be honest, I don't understand the bond market. Basically he's found a way to short the Japanese debt, don't ask me how.

If you're all financially savvy then it might be worth taking a look at it-it seemed like a good idea when he was explaining it to me but I'm not qualified to judge. Maybe someone here is!