If we liquidated all equities and mutual funds, we'd have to put the cash somewhere. What do you recommend?
I am not a financial advisor, and would hate to give you advise that didn't pan out. Every person's situaton is different. Don't forget if you cash out, you will likely be paying premium on capital gains if if throws you up a tax bracket. And if its from IRA's or 401 K's there's the age 59 1/2 restriction, and what is pulled out is taxed fully as income. Again does that extra income move you to a higher bracket?
But IMO, if you are shifting out of equities, of what I have shifted this is what I have done:
* 1/3- Cash.
* 1/3 mix of a 75/25 precious metals (silver/gold). Along with barter of goods and services, this may be the next currency.
* 1/3 income producing real estate that isn't rental property. Farmland is an example. Plats of timber that can rotated and harversted is another.
The sheeple who voted for Biden don't realize that nationwide lockdown Part 2, will absolutely crush this economy.
Scenario 1- Biden throws 10's of trillions of dollars in aid. China/Others liquidate US Bonds, Dollar is stripped of status of reference currency. Massive hperinflation insues.
Scenario 2- With some fiscal restraint, demand for goods and services crashes due to spiraling unemployment . Think 1929-1939 on 'roids.
Scenario 3- The mask and ruse comes off this pandemic crisis, things get back to some normalcy,(or effective vaccine) and we live in a dead in the water stagflatted Obama like economy that will start a downward slide as Biden dismantles the oil industry.
I have done this for disaster reserves to address both the hyperinflationary or crash scenarios. And honesty, I can't tell you which one is more likely. Also don't forget, if GOP can hold the senate, a lot of this short term doom and gloom many be premature.
