I have quite a large student loan that I am contemplating paying off. I am finally in the position to do so. However, I am hearing constantly about a possibility of hyperinflation, or at the other extreme of deflation.
What are your takes on this?
Pay off studend debts, save cash, buy gold, stocks, or...?
By xlr8 Follow Thu, 9 Jun 2011, 3:43am 373 views 1 comment
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My personal preference is to pay off the loan and accumulate gold monthly. I would buy a few gold coins today, stash some cash around the house, stock up the pantry, pay most of the loan off and then accumulate gold monthly and pantry stuff while eventually paying it off completely.
There is the John Paulson strategy: lock in a loan, for a house in his case, at a low rate and buy gold. The price of gold will go up to pay for the loan.
Some say the stock market is overvalued and due to come down.
However, if you want to invest in stocks you could check out James Dines, also Jim Rogers' commodity indexes.
I would stay away from bonds. Even the world's largest bond investor, Bill Gross from PIMCO, is mostly out of bonds.
Bottom line, I personally think we're in a decades long slump, and there are finance people saying nothing has changed and another 2008 big one is coming they just don't know when.
Also I would study austrian economics at mises.org to learn what is really going on in the economy.