Thursday, March 4, 2010

A note on what I think regarding investments and next few years

I wrote the following in an email to a user of 'EzBacktest' with which I had a small conversation regarding investments. I thought it was worth making public:

' I'm in no position to be an advisor to anyone - because it's not my profession and
I can't take anyone else's liability, however I must tell you this: It is my
opinion that we are still facing a severe economic meltdown. I don't expect
any traditional investment approaches to be considered 'safe' for the next
few years. I don't believe in the 'gold mania', I don't trust current
treasury and Feds, and I don't trust risky fixed income which includes:
Corporate, Junk, Emerging markets and European bonds. That pretty much
covers all of potential investment ideas. So IMHO, one has to stay nimble
and have enough cash at hand.'

I went on to explain how I positioned my self since December 2009, the gist of it is that I'm about 70% in short term income. I've quoted enough recent articles on which I based my opinion.

I'm no Gordon Gecko, probably neither are you. Is this the time to take risks and shoot for about 8% a year returns?

I welcome a fruitful and public discussion on the subject in the comments.


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