Diversification

Discussion in 'Wealth Creation & Management' started by renovator, Apr 16, 2013.

  1. renovator

    renovator Well-Known Member

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    Looking at the charts drop like a hookers panties . Should be enough to see why diversification is a must .

    Anyone have good reasoning why you should be all in metals or any investment ?

    Ive said for years you need to spread risk around & you get the old "put all your eggs in the one basket & watch that basket carefully" or you lack conviction etc etc. .
     
  2. Clawhammer

    Clawhammer Well-Known Member Silver Stacker

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    sold on that mate...
    Been taking a bath on metals :-(
     
  3. Auagau

    Auagau Active Member

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    With the amount of emotion shown over the last few days, it is pretty clear that a lot of people here have only 1 basket and the price of eggs is falling.
     
  4. Phiber

    Phiber Active Member Silver Stacker

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    Definitely agreeing with you mate!
    I just find increasingly hard to find good investments vehicles :/
     
  5. sammysilver

    sammysilver Well-Known Member Silver Stacker

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    Classy, your hooker wears panties!
     
  6. renovator

    renovator Well-Known Member

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    I pay extra :lol:
     
  7. sammysilver

    sammysilver Well-Known Member Silver Stacker

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    Who said fiat wasn't useful?
     
  8. renovator

    renovator Well-Known Member

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    I love cash . I remember numerous times being shouted down for holding worthless fiat . I will always have some dirty folding no matter what happens . To always have it for buying opportunities is a must imo
     
  9. RetardedMonkey

    RetardedMonkey Active Member Silver Stacker

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    Cash is definitely king at the moment. Everything else is on the downward slope.
     
  10. trew

    trew Active Member Silver Stacker

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    Marc Faber has been saying for years in just about every interview he does:

    25% stocks
    25% property
    25% cash/bonds/whatever
    25% gold

    b/c you don't know how the future will pan out
     
  11. SilverSanchez

    SilverSanchez Active Member

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    i AM diversified...

    I bought gold AND silver!
     
  12. AngloSaxon

    AngloSaxon Active Member

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    Bank shares doing well. But given the state of the world economy I'm ready to jump out of them if need be. Done very well on them recently. And glad to have done so given current prices of PM miners and physical PM.
     
  13. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    It's pretty easy to make that call. Spread your odds evenly across all sectors, you don't need to be a genius to work out that it will reduce your exposure to significant capital loss.

    Maybe it just might reduce your exposure to significant capital gain too. But what would I know? I don't make my money by publishing books and going on speaking tours. Where does Faber's business model fit into the 25/25/25/25 breakdown? It doesn't.

    Just another con job.
     
  14. trew

    trew Active Member Silver Stacker

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    I just try to use diversification to hedge against my stupidity.
     
  15. SilverSanchez

    SilverSanchez Active Member

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    Anyone know David McIlvany?

    His 1/3 1/3 1/3 strategy - the weighting is based on ratios, its pretty good idea easy to follow

    Bonds
    Stocks
    Cash/Bullion
     
  16. SilverSanchez

    SilverSanchez Active Member

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    I tried doing that - I tried to short my longs, cut the legs crooked and now have no pants
     
  17. TheEnd

    TheEnd Well-Known Member

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    Two areas two keep an interest in are Technology and Energy like Solar power and Natural Gas products ie...... http://www.bluegen.info/..... With electricity sky rocketing in recent years many will be looking for alternatives to use other sources of energy and save money on their bills in other ways.....8 Years ago I invested 20k into a locally designed and made automotive LPG system that is presently under R&D and I have had some technical input on its design as I am a Diesel mechanic by trade .... It will be light years ahead of any other product and this year I should make up to 100K if the shares and company lift off when the final product is available to sell to the world later in the year.....

    Also, please respond to my new thread about 'Tax on interest earnings" in this section..... I don't get why the Gov are doing this to savers.....what is their excuse?
     
  18. sammysilver

    sammysilver Well-Known Member Silver Stacker

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    It was dark. I hope you ain't my hooker!
     
  19. wilhal18

    wilhal18 New Member

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    to me 25% cash is scary. the inflation is out of control these days. to me about 10% is good.
     
  20. Phiber

    Phiber Active Member Silver Stacker

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    Don't know in Singapore, but until not long ago you could get term deposits @6.5% on cash.
    Not bad...
     

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