What is to be done?

[Ben]

As an enthusiastic follower of iTulip I am often left wondering what I can actually do to keep my money safe and earn a good return.

Specifically, there seem to be bubbles in all major markets, which leaves little room for contrarian unpopular assets or safe havens. In fact, it seems like everything will go down together since it is all based on the same credit.

So my question is, where are you keeping your money? What are you looking at to protect against the fears expressed on iTulip, what things are you avoiding and what are you hoping will do well in the long term?

Gold seems a good idea in many ways - but even it could be seen as part of a commodity bubble. Gold and commodities might be damaged by a global slowdown as well as equities.

What equity sectors and regions are you looking at?

Are you holding large amounts of cash?

[Jim Nickerson]

You might look at the topic 'asset allocation' posted by jk on page 2 of the fora.

Jim

[blazespinnaker]

Yes, I am holding 90% cash in my portfolio.

I am trying to diversify into Japanese Yen at the moment without much luck.

You could try USPIX and some other shorting instruments, but the predicting recessions is risky and certainly doesn't pay long term.

[Jim Nickerson]

I'm 53% in cash now.

At safehaven.com, a fellow Vokmar Hable posts commentaries each weekend. His comments are some of the clearest that I find and are about how he sees various markets performing over the near and intermediate times.

If you accept the gains he posts for his trades, then I guess it follows that his thoughts are winners. I take his thoughts as another perspective as one man sees things.

Jim

[Jim Nickerson]

Yes, I am holding 90% cash in my portfolio.

I am trying to diversify into Japanese Yen at the moment without much luck.

You could try USPIX and some other shorting instruments, but the predicting recessions is risky and certainly doesn't pay long term.

With so much cash, of what exactly are you most fearful in the markets?

Jim

[Ben]

I guess you could argue that cash doesn't pay long term as well...? Though if it gets rough for equity markets then it could be excellent in the next couple of years. (btw: money markets or bank accounts?)

Perhaps if you have time then you will be able to find stocks that can weather possible turmoil. I live in the UK - the markets don't seem as bad over here though we have many of the same economic problems.

What other websites do you guys follow? Anyone else like the daily reckoning?

[blazespinnaker]

Yeah, cash sucks.

I'm in a 4% bankers acceptance account. I am considering some income trusts but they make me equally nervous.