Comments on: What do I fear more than a recession? http://www.thickenmywallet.com/blog/wp/2008/01/21/what-do-i-fear-more-than-a-recession/ Everything to do with thickening your wallet by entrepreneur turned President of an Investment Company Tue, 07 Sep 2010 20:18:38 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: moneygardener http://www.thickenmywallet.com/blog/wp/2008/01/21/what-do-i-fear-more-than-a-recession/comment-page-1/#comment-5779 moneygardener Wed, 23 Jan 2008 22:44:45 +0000 http://www.thickenmywallet.com/blog/wp/2008/01/21/what-do-i-fear-more-than-a-recession/#comment-5779 High inflation is scary indeed. This is another reason dividend growth is a great way to invest. Dividend growth has trumped inflation in a big way long term. When I can only get a 5% raise at work, I really like that fact that I can get annual raises of 8-12% pre-inflation with dividends. High inflation is scary indeed.

This is another reason dividend growth is a great way to invest. Dividend growth has trumped inflation in a big way long term. When I can only get a 5% raise at work, I really like that fact that I can get annual raises of 8-12% pre-inflation with dividends.

]]> By: Canadian Capitalist http://www.thickenmywallet.com/blog/wp/2008/01/21/what-do-i-fear-more-than-a-recession/comment-page-1/#comment-5644 Canadian Capitalist Tue, 22 Jan 2008 12:25:44 +0000 http://www.thickenmywallet.com/blog/wp/2008/01/21/what-do-i-fear-more-than-a-recession/#comment-5644 William Bernstein believes that a small weighting in gold (say 2%) is warranted because it is low enough not to hurt returns and when gold does move up, it rises up rapidly in value (often doubling in a year) to boost returns of the portfolio. Do you have any studies that show gold has a close correlation with inflation? Gold does have a weak correlation with other assets and the US dollar but as far as I know, gold keeps up with inflation over the really long-term and does so in short rapid bursts. Over the short term you are looking at, who can say for sure what will happen? William Bernstein believes that a small weighting in gold (say 2%) is warranted because it is low enough not to hurt returns and when gold does move up, it rises up rapidly in value (often doubling in a year) to boost returns of the portfolio.

Do you have any studies that show gold has a close correlation with inflation? Gold does have a weak correlation with other assets and the US dollar but as far as I know, gold keeps up with inflation over the really long-term and does so in short rapid bursts. Over the short term you are looking at, who can say for sure what will happen?

]]> By: Four Pillars http://www.thickenmywallet.com/blog/wp/2008/01/21/what-do-i-fear-more-than-a-recession/comment-page-1/#comment-5617 Four Pillars Tue, 22 Jan 2008 00:40:38 +0000 http://www.thickenmywallet.com/blog/wp/2008/01/21/what-do-i-fear-more-than-a-recession/#comment-5617 I'd say your cash's value is eroding at a slower rate than the markets.... Mike I’d say your cash’s value is eroding at a slower rate than the markets….

Mike

]]> By: Re: money http://www.thickenmywallet.com/blog/wp/2008/01/21/what-do-i-fear-more-than-a-recession/comment-page-1/#comment-5609 Re: money Mon, 21 Jan 2008 18:00:50 +0000 http://www.thickenmywallet.com/blog/wp/2008/01/21/what-do-i-fear-more-than-a-recession/#comment-5609 I bought some gold and silver this summer. There's something about holding the physical metals that calms me down. I don't think gold stock or certificates would work the same for the peace of mind. I don't mind holding bullion forever, "just in case", people still have wars and who's to say there won't be one in my lifetime. They typically say 5% of assets in precious metals is okay as an inflation hedge. I have less than that, probably closer to 2-3% right now. I bought some gold and silver this summer. There’s something about holding the physical metals that calms me down. I don’t think gold stock or certificates would work the same for the peace of mind.

I don’t mind holding bullion forever, “just in case”, people still have wars and who’s to say there won’t be one in my lifetime.

They typically say 5% of assets in precious metals is okay as an inflation hedge. I have less than that, probably closer to 2-3% right now.

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