Profiting from the collapse

When everything was down in 2008 or so bought a foreclosed on property, paid 77 thousand for it, put 20 thousand in it, rent it out. Clear about 10 thousand a year after expenses on rent, cut 8 cords of wood off it, and have had offers at 195 for place. That amount in CD's 100 k, will give a return of about $600 a year now and T Rowe Price, the companies manager of the IRA, at the time between 2000 and 2008, lost half of what was invested so we got out. Bought SKS and ammo for $100 each, selling one now and then for special things the wife wants, did better than stock market did if you didn't hit the jackpot in picking stocks. Ever one talks about Microsoft, Apple. etc and neatly forget the winners of old Panam, GM, US Steel, etc, in long run it seem like I bought and held losers and missed the Buffet picks,

Haven't figured out how to pick the winners, last purchases were MF 1552 tractor, new garage, small metal lathe that I am rebuilding, new forks for tractor, new 3 point disc, etc. Thinking more about things that will be of use to me and likely hold their value or increase in value. Can't eat gold but old tractor and such would plant a lot of the empty farm land around me that the "investors" have bought and are waiting for the right time to build sub divisions on. Need to get out to farming country and pick up some old towed and 2 row stuff like we used 60 years ago and rebuild. Wood splitter is worth twice what I paid for it and has split all my wood for 20 years. 9N was 1k, used for 20 plus years, fun to play with and doesn't leave ruts in woods, so often use it instead of 2005 tractor.

Short money and stocks, go long on self reliance and safety.

 

Max has more experience with the financial system and more wins than anyone. He gives good advice.

 

Oh, I cannot provide advice. I'm not a financial advisor. What you need determine is what your risk tolerance, financial goals.
The only thing i can say is if you are going to invest, make sure that it's something you understand. If you are an expert in an area of the economy, you probably know who is a great company in this field or who makes the best product. Invest in what you know.
It's when you invest in something you have no idea how it works ... then that is gambling.
That would be like me investing in NFTs. I've read a bunch of research, i've tried to understand it, I just know there is going to be a crap load of people making money in these. But i just can't wrap my head around it. It's not clicking.
So eventhough there are millionaires made in investing in NFTs. One of them is not going to be me. I'd be loser if i put money in here. So Imma not playing.

So basically, only advice from me. Buy what you know.

 

my grandfather well before the depression in”29” put money in every bank In Chicago where they lived.
They fared very well through the whole event. He also invested in AT&T, and did well.
The point is you are going to loose money somewhere, “like manure you got to spread it around encouraging young things to grow.” life is full of risks . Taking risks is not easy but necessary.
You don’t know how good that food is till you. Eat it..
My investments are in food, all kinds of metals,fabrics, friends, skills, tools, ect…
I grow chickens for eggs and a friend has a. Restaurant so we barter.

 

I have made myself sick trying to come up with a logical solution...and there isn't one because we have no idea what our idiots in the government will do next - maybe move to throw us into recession, outlandish spending sending us down the drain, or even war?

Russia going to the gold standard is indeed interesting and a bit concerning but not a huge world game changer because their economy is fairly small.

I do think if I was still buying stocks (and I'm not!) and with the idiot Biden in the office for 3 more years, Defense stocks would be a good bet because either they will crash as they slash defense spending or they will increase with Ukraine spending but one thing for sure is AFTER Biden they will go up as it will be necessary to rebuild military - again.

Land and gold seem to me to be the real (and only) financial insurance policy. The land bubble is about to crash and crash it will and when it does, I will move to more acreage. I already know what I will buy.

Gold is struggling to stay above $1900 and when it goes below $1900 then I believe that gold coins at that point would be a valid buy; however, I believe that purchase of gold is ONLY an insurance policy to protect your life's saving in case of a collapse, it is not an investment. Hell, with a 28% tax on gold profits - well - need I say more and that is not counting what other charges the exchange puts on you or etc. The problem I have with gold is when you move a large portion of your money into gold, say $100,000+ or some sum large enough to insure yourself and family a good future in a collapse, it is basically locked-in and those monies cannot be used for other things. So, if the collapse doesn't happen or it happens 20 years from now - well - you basically lose because that money could honestly be used much better.

Anyway, we do what we can when we can and hope for the best while preparing for the worse...

 

Great take, Bandit. I worry a little bit about the price of land in this environment. I have seen several corrections in my lifetime, and they were accompanied by a fall in land prices. BUT, I have never seen inflation like this. I think it’s possible that we will see our next recession or worse with inflationary pressure that keeps the market from correcting itself.
I think it’s time to look out a few years, and get whatever durable goods you think you’ll need. Thinking tractors, vehicles, furnaces, appliances, building materials. Prices are not going to come back down.

 

Land
Equipment
Reliable Vehicles
Cattle, Chickens
Canning Equipment and Knowledge
Fencing
Relationships with your Neighbors
Precious Metals
Equipment to protect it all

 

According to the federal gov you have to have a surplus of $200k to be a wise investor. If you don't know about this law then there is a better than average chance you don't have $200k floating around to invest. The irony is that the people who don't have the $200k are the ones who need it the most.

 

If you want to know where to put your money its actually not that hard. What are your options? There's really not a lot.

Hold. You could always hold on to your money while inflation takes it to 0. Holding cash is like holding ice. It melts into nothing.
Stock market. Do you believe we are at the lowest point and that our country will survive? If so then buy. If not then wait.
Gold and silver. Do you believe the prices are artificially suppressed? If so, will that end any time soon? If yes, then buy.
Land. Do you believe the world population is going to collapse? If it does and people start dying off then land is going to be really cheap. If not, then buy.
Bitcoin. Do you believe we are headed to the dark ages where electricity will cease to exist for the rest of our lives? Then sell.
Other cryptos. Do you believe they have something better than BTC? Then buy.
NFTs. Do you know how to embezzle money? Then this might be for you... if you don't know how to finger paint.
Fiat. Do you think that paper money is going to last forever? Do you think that any government is here to make your life better? Do you think they have a plan to make everything ok? If yes, then send me all of your money. I will make it turn into 30 billion dollars... you know, because of the inflation. "Brought to you by Carl's Jr."

I think people make things way to complicated. All of life is a gamble. Do what you enjoy doing. For me that is rolling on a pile of gold and silver like a dragon in my castle on my own land while stacking Sats.

 

Rather than figure a way to increase your holdings in fiat dollars, which are losing value daily, you should be trying to figure a way to survive! Once, wealth was defined as four walls, a roof, a warm hearth and a full belly...and it might be again! Paper money might only be good for starting fires and chinking cracks! Take care of the basics first, and then start worrying about your portfolio!

 

Remember when only the king had running water? I don't even think he could take a hot shower back in the day. Figure out what is important in life and then make it happen.

 

This week I bought long term storage food, wheat, rice, beans. Bought $100 worth of sheet rock screws. same amount of bolts and self drilling sheet metal fasteners. Went to scrap yard and bought what decent metal they had for lathe and welding. Don't know if it will go up or down, but when I need it I will have it. Built garage 3 years ago, $22 a roll insulation then is now about $50, total cost to build today is at least twice what it cost then, Tractor and roto tiller, generator and snow blower, metal lathe and welder are there. Dry, clean, and out of weather. Proper storage of equipment is the best investment in the world. 25 year old generator works just fine and is better built than almost anything you can buy today. Run monthly and let carb run dry when turned off, rotate the gas, put moth balls in regulator area, don't know if it will keep the mice out, but haven't had a problem so intend to keep doing it.

Thinking back, the best investment a person can make is taking care of what you have. Using storage food instead of throwing it out every 10 years or so, changing car oil at 3,000 miles instead of what the car company calls for, changing timing belts on cars that need them, changing belts and hoses on tractors and such and doing preventive care. Buying a wood splitter and using it for 20 years, same with tractor, getting 250,000 miles out of your car, and the list goes on. On my way home last night I saw a new small tractor with a bucket and backhoe that is parked next to his garage and set outside all winter and is still there, I know of another tractor, 30 hp or so with a bucket that hasn't moved in 3 years, and we all know the list goes on. Free stuff sign on several hundred dollars of kids toys, play house, etc, sitting next to road. Going to the dump in the fall and seeing all the expensive grills that are rusted and thrown away, the trampolines, exercise equipment, cheap garden furniture, rusted bikes with flat tires, rusted wheel barrows with flat tires, all the stuff that wasn't taken care or was bought on impulse and stored a couple years and thrown away.

It is sad, but the best buys I have made lately are those at yard sales where people are moving, or are losing the place, or are going into a retirement center. A buck or two for a 20 year old US made shovel, or rake, or axe. Often pick up Mason jars for 25 cents or less and have run out of space for old pressure cookers that need gaskets. If things do start to go bad, in ever recession I have seen in the last 70 years, am 84 and didn't pay much attention before about 1950. if you had cash there were always people who were losing things or trying to keep from losing things, as well as people cleaning out empty houses etc, that were selling good stuff for little money. In my mind once your home and car are paid for and some put away for taxes, the best investment you can make is on things that you will use, eat, wear, grow food with, tools, building supplies, etc.

 

That's good advice!

Now I just need to think about what I know....

 

Yes. that's good advice too. I was thinking about that recently. I read The Little Blue Book that Beats the Market in my early 20s. My goal was to become a millionaire by the time I was 40. That didn't come close to happening, but I didn't follow the advice in the book. I think if I followed the advice I probably would have succeeded. Putting little bits of money into undervalued stocks across the market would probably pay off over time. I think he calls this value investing. The problem is that it's really hard to stick with it. Especially when you see all your hard earned money losing value. You have to stick with it over the long haul, which I did not do. I made it about 2-3 years, then gave up and sold everything. Had I kept those stocks, I probably would be a millionaire now. I didn't foresee a 10 year bull market after the 2008 crash. I was expecting another crash, but it never happened.

In any case, I think it comes down to mindset. Had I embraced a Johnny Appleseed type of mindset and didn't worry about losing the money that I "invested", then it probably would have paid off in the long run.

 

If you want to profit from the collapse check out
Unusual Whales

 

If you want to make a lot of money off of the coming hard times, write a book entitled "How to Profit Off of the Coming Hard Times"! Similar books have been on the best seller lists every year for the last 50 years...even in good times! Hell, they outsell the Bible! The beauty is that the author doesn't have to know anything about the economy, finances, or investments...and he doesn't even have to be right! As the great man said, "There is a sucker (aka customer) born every minute."!

 

Here's some advice on stocks from Elon Musk

Since I’ve been asked a lot: Buy stock in several companies that make products & services that *you* believe in. Only sell if you think their products & services are trending worse. Don’t panic when the market does. This will serve you well in the long-term.

https://twitter.com/elonmusk/status/1520650036865949696