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Where do we go from here?


cwericb
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The world economy is in a mess. As most people here know we've been heading this way for years, but the sad truth is that most people still have no clue as to the reality of the situation - nor do they care. The only bright spot I can see is the tremendous pent up demand in Asia.

 

So my question is this. There is little any of us can do about this on the macro scale, so what do we do to protect ourselves as individual investors? Any suggestions?

 

Say what you like about gold, etc, but I have been invested in RBC Precious Metals Fund for the past 6-7 years and have no complaints, but I was caught off guard when it tumbled in 2008-9, just when I thought it would move in the opposite direction. Lately I have been moving a bit into dividend stocks like FTR but that's no guarantee. FFH Has just been given an upgrade by Cormack today, but I already a fair amount there.

 

Never mind politics, what are you guys looking at for investment for the next few years?

 

Sorry, but this seems to be more or less covered under "How much of your portfolio is in cash?" So just ignore this post if you wish.

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I think continued growth from China will keep the train on the rails. The US looks to be hitting a soft patch; too early to call a double dip. Europe; no opinion.

 

At present, I see BRK as a solid buy. If it continues to fall I will continue to add to my position. Nice defensive holding. I also like GLW (Corning); stock has already been killed. I am also going to dig into DELL now that it is trading back under $16; I like the CEO and I like where it is headed.

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Thanks for your thoughts Viking.  If it were not for China/Asia I would be very pessimistic. There is an interesting interview with Peter Munk (Barrick Gold) in MacLean’s magazine on mining where he says...

 

“I believe that it is inevitable that over the next two decades those 300 to 400 million Chinese who live in the same homesteads and same conditions as their grandparents on $3 a week, unless those guys are given a chance to either emigrate to cities—which is impossible because the cities are all overloaded—so the only alternative to keep them gainfully employed and give them a chance to improve is to move industry in there. Every factory needs power. The moment you have power, you need roads, you need railroads, you need proper transportation to take the raw material to them and take the finished goods away. The amount of infrastructure needed just in power generation and distribution is equal to the whole wiring system of the U.S., which is copper. To build buildings for the factories requires steel, to build roads you require cement, and all that needs energy, which is coal. So if you add it up, whether it’s zinc or lead or rare earth or agricultural potash to feed them, it’s all mining.”

 

http://www2.macleans.ca/2011/07/27/on-immigrant-dreams-the-importance-of-failure-and-why-the-future-belongs-to-canada/

 

Regarding BRK, I have been satisfied with FFH but I think that I may have to look closer at BRK.

 

 

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