What will be good assets to grab when GFC II hits? And how to prepare?

Zimbabwe style collapse might require a good stack of 9mm and 7.62mm bi-metal rounds. I would also like to extend my stack of antibiotics, analgesics and other medications. The most over-looked assets for the prepper and probably worth more than pm's in a serious situation. I can't go more than 3 days without blood pressure medication and I would give a kilo of silver to have it if I couldn't buy it. Of course, I would then trade you some 9mm for that 1kg and whatever else you had but we're talking Zimbabwe now. Aren't we?

 

During GFC1 I stocked up on BHP and CBA shares and ended up making a pretty tidy profit on them, but for GFC2 I wouldn't be going anywhere near CBA in particular.

In fact, apart from PM miners (like Newcrest, Silver Lake Resources etc) I am staying well clear of the share market until I see a SOLUTION to the massive sovereign debt and bank leverage problems that are likely to make GFC2 worse. Whether that involves some serious default action and/or banks hitting the wall I need to see a real plan to resolve the problem before I'll be convinced we've seen "the bottom"

In the meantime I'm stocking up PMs, Bitcoins and USD for now. If it gets worse I'll be dumping the USD and stocking Rice, Pasta and tinned goods, then if it gets even worse I'll be looking for guns and ammo. But if it's not too much worse than GFC1 the PMs, Bitcoin and USD will position me well to buy up cheap assets probably foreclosed real estate or other tangible assets that can be picked up at fire sales and repo auctions.

I always wanted to own a Harley Davidson, so if we are approaching SHTF and I can get one cheap then a transformation into a Mad Max type persona with a big fat Harley and a shotgun might suit me

 

They didn't last time. The Aussie market is different remember more than likely it will go up.

 

My understanding is last GFC our property market didn't go down because we did not go into recession mainly because of mining and China. They won't help that much next time. If there is a another GFC soon I think our property market will crash.

 

If you are really worried about this, then I'd suggest a couple of things (in order of importance IMO):

1. Food. If nothing else, if you have a long term supply (6-12 months) of non-perishables, you'll be be able to ride out a lot of the harder times. And it provides a huge stress reduction if you are faced with a potential layoff simply knowing you can provide for your family.

2. Cash (outside of the bank). If there is some sort of crisis, then the banks may end up limiting what you are able to take out on a daily or weekly basis. If you're looking at buying stocks and things, then having a bank cash account is probably going to be enough but having a few thousand stacked away is not necessarily the worst idea in the world.

3. Pay down debt. If interest rates go up and you have a lot of outstanding debt, then you're going to be behind the 8 ball. Credit is about the cheapest it's been for a long time and if you're at the limit now, even a small increase in rates can tip you over the edge. If you're worried that much about a crash, maybe sell some assets to pay off other debt. And yes, your home value might decrease, but if (for example) it drops 20% but you have 50% equity, then the bank will be unlikely to force a sale on you at the worst possible time.

4. Liquid assets (cash inside the bank). Probably something you need to have if you want to take advantage of a drop in the stock market. Because it's in the system, you probably should still be able to use it to buy shares even in the case of the Greek style banking restrictions that were placed on them. After all, you're not taking it out, just moving it around.

5. Physical silver and fractional gold (and the like) do allow for effectively holding assets in USD, but they will probably be next to useless in a case of a total GFC style breakdown. After all, if people can't afford rent or food, they won't likely be able to purchase gold or silver. I think in a severe style crisis that they'll be the least of your worries. But - if it were to continue into a full on depression that lasted years, then it could end up being used as a form of currency that's better than AUD. So it's worth having some of your assets in cold hard commodities.

Just my 2c anyway.

 

It could happen any time in the next few years.

[youtube]http://www.youtube.com/watch?v=aA7iAMTAWHM[/youtube]

 

Buy shares in Breweries and Gambling ...Only industries in Australia that did well in 1929/32.

Regards Errol 43

 

Vaseline ....

 

Popular marital aid.

You put it on the bedroom door so the kids can't come in.

 

Works in politics, banking and finance too...

 

Noted.
I think I can form an investment strategy around that....

 

No such thing will happen. It didn't happen in the last GFC and it won't happen in another GFC.
When was the last time the banks in this country froze bank accounts?

 

Shares.
Pick your flavour.
Although take note at how long the GFC took to makes shares hit the bottom. Don't expect it to be any quicker next time around.

Have cash in the bank ready to go.

 

Yup, I've got credit ready to rock'n'roll, just waiting for the crash and the panic selling to set in. I've been in no hurry to buy, anywhere in Oz at present.

 

This is always smart. Even if you aren't a crazy doomsday preper.
People will always accept cash for stuff.

PM's are next to useless in a crisis. If you aren't right next door to a dealer who will take it then it's a PITA. Cash is king.
You don't want to be forced to sell your PM's in crisis anyway, as you'll have to accept wherever someone is willing to pay. You could lose out big time.

 

The other (perhaps main?) reason aussie house prices didn't drop after the GFC is because they had just been on a 4 year flat period after the massive boom from 2000-2004. People forget that the property markets fall flat. The last two flat periods have been 4-5 years stretches.
If another GFC happen now, then it will be right at the end of another big 2000-20004 style boom, with everyone talking about the bubble. Panic is almost assured to set in. It should be different this time.

 

Your talking to a Cypriot!