Up coming Financial Tsunami - 2012-2018

If you require remembered 2008-2009, that will be the worst financial year we ever faced since Singapore became independent in 1965. For your credit crisis in OUR OWN SELVES then unveiling its evening time closet, the Dow Jones Economic fell approximately 54% from its high of 14, 164 in October 2007 you have to hit bottom on Feb . 9 at 6, 440. You can see - the Final Impact of these tsunami is yet clicking us and it's on its way now.

Now in 2012, major economies furthermore they US and Europe will probably be slowing. Retail sales in OUR OWN SELVES and Europe are running to the lowest pace in several months, and US and Europe corporations ended 2011 with the slowest profit growth in few years. 2011 was the worst year for new home sales in the usa since 1963 and house prices are set to fall one more time in 2012. Yet, people are lured to the Stock Market, thinking that things is undoubtedly fine and controlled as portrayed however media. When this finish up wave of tsunami come, even Singapore may needs to be retest its Straits Time intervals Index low of 1513 roughly Mar 2009.

Backdrop of US

With country budget deficit at US$ 1. 3 thousand, the official US big brother debt exceeds US$15 trillion. President Obama just got approval to enhance the US debt get US$16. 4 trillion in the middle of 2012. With all these in your mind, the US unofficial national debt could be the close to US$100 Trillion if we you consider unfunded liabilities and the required permits in US. If US is running perhaps you should corporation today, it is already technically Bankrupt. US as a leading economy and empire, is history.

Backdrop of Europe

When Greece announced around the world that they are struggling of defaulting their away from the coast debt, the euro zone leaders declared they would bail apart Greece in 27 October 2011. However, by 20 February 2012, the Euro zone finance ministers agreed to a second bailout for Greece. Greece has officially already defaulted on it's debt, with Spain and Italy a little way behind. Having said nonetheless it, Germany is the at best foundation of the European economy. Will Germany get bored stiff bailing out its poorer and mismanaged European counter-party later on and each country just resume its own currency? In the event it happens, Euro will die so have the weaker European districts like Greece, Spain Italy and Portugal.

Current Scenario

Have you known the Great Depression? Differently, quoting from Wikipedia, "The Great Depression would have been a severe worldwide economic depression in this decade preceding World Conflict II. The timing due to this Great Depression varied going through nations, but in most countries it originated in about 1929 and lasted ahead of late 1930s or early 1940s. It was a hypnotist longest, most widespread, and deepest depression due to this 20th century. " So just why mentioning about the Sister Depression? Do you know that there is a great similarity between many years 1934-1937 and 2009-2011?

Let us re-examine both of these scenarios

The Stock Market crash in 2008 is similar to the crash in 1929 crash which eventually led to the great depression. The moment the crash in 1929, you will find the bear market rally that originated in 1934 which lasted until 1937 nicely took the Dow Jones from a level of 90 to 185, a profitable gain of 106%. The Pink sheets . then collapsed and could not recover till seven many later, 1944. If you look at this past trend, isn't the bear market rally from 2009-2011 similar to that of the bear rally back in 1934-1937? I hope I'm wrong however , if I'm right, we are heading up to some serious financial tsunami is ultimately bring the modern-day US Stock index these uncomplicated March 2009 low (6, 440). Should this happen, Singapore may also retest its STI low of 1, 513 occurred on October 2009.

Gold Investment

With squandering faith in currencies don't forget that Stocks, the only way for gold is to go up. The correction within the year is not taken as a put up with, rather than as a great correction. Looking at scenario today, I expect the gold price heading to 3, 200 before the gold rally has ended in approximately 3-5 time time. It is to be noted that for 11 years, the expense of gold has closed each year higher in price than it started the age. I have previously written blog post on gold investment in 2009 and for a moment like to have a closer inspection, it's under my Ezine articles

My two cents price of advice

1. Ensure that you have to enough liquidity to ride out this coming rough financial tsunami desires to last several long years now from 2012-2018.






2. Ensure you may minimum financial liability removal forwards by not taking from the lender unnecessarily.






3. Ensure you may enough insurance coverage to pay off hefty hospital and health-related bills when jobs or perhaps income are tighten during this period.






4. Ensure that you avoid Stock Market and exit immediately for any gain that we now have made currently. Do n't be greedy. However, there are a handful of categories of Stocks that you could hold and make money when a tsunami come.. Put over a thinking hat... I shall reveal one out of part 6 below.






5. Ensure that if you get any investment portfolio, they will certainly continuously rebalanced with at the very least 50% Bonds in The japanese.






6. Ensure that you diversify forget the by buying into rare metal or gold mining restaurants as gold price keeps rising.






7. Ensure that you pull off any US$ or Euro as they may continue to depreciate in value as outline there's no doubt that discussion above.