Originally Posted by
RXS676
It seems to me the excessive national debt will result in either default or printing money/hyperinflation. Isn't having 90% of your assets in treasurys risky? Why not precious metals, foreign currency or some other asset that will preserve (if not grow) the purchasing power of your money?
They can't print more money until they float more debt, their ability to sell debt at 0% interest is probably coming to an end shortly. An excellent company such as FEDEX has to pay 8% to buy money. The Fed is out of ammo. I think the writer views many large banks as a higher risk proposition than short term treasuries. Even though many financial institutions are trading well below book value, there are still questions about those books.
Precious metals are already pumped up, foreign currencies and debt are worse than ours. Perhaps some commodity plays would be the way to go?
The writer is looking for a deflationary scenario, much like the last 15 years or so in Japan. Who knows, it is hard to find any bullish opinions, which may be a good sign.