Posts

Sorted by New

Wiki Contributions

Comments

CAP15y00

Lottery Tickets? Life Insurance?

Eliezer, isn't the answer to the question "no." By definition, in the Long Slump, no asset classes will do well and no bubbles will form.

The Long Slump will entail prolonged government intervention in the markets, people hunkering down, being scared of taking risks.

The only asset that might do well is the one that is in most demand: dollars. People will hoard money; it will be the only thing in demand. Debt will be paid down. People will stop spending. The yen has done well during Japan's long slump.

It won't payoff quickly and it won't pay off 100:1, but it will payoff.

Otherwise, stay as diversified as possible and hope that at least one of your asset picks is right.