We've previously discussed the fact that my 401K value is stll hovering near half what it was a year ago. Ouch.
Yours too? Yeah, most of us find ourselves similarly distressed.
We're continually being educated by Obama's media that the rate of job loss is slowing down and the recession is over. "We're dying more slowly now!" Big whup.
Believe what you want... I think we're still facing a helluva roller-coaster ride.
An acquaintance just wrote that a financial institution she worked for shuttered its doors last week, surprising everyone... present and former employees. I replied I'm reading that we can expect more closures... the near future may be a scary few months.
From the linked article:
"The FDIC estimates bank failures will cost the fund around $70 billion through 2013. Ninety-two banks have failed so far this year. Hundreds more are expected to fall in coming years largely because of souring loans for commercial real estate."
(Bold mine- GB)... Defaults on commercial real estate are gonna be a big deal.
Are ya doing anything to protect your assets? Regular readers know I'm buying precious metals and ammo, and storing food.
(None of this will go to waste if I'm dead wrong, which I hope to Dickens I am.)
Day before yesterday I checked and found there are no precious metals stocks for me to move my 401K funds into. What's the next best move to insure preservation of my principle?
I moved 50% of my 401K funds into an International Growth fund and 50% into an International Value fund, and will intermittently rebalance those as necessary in the future. Watching our leadership make financial mistake after mistake, my thinking is that other countries- particularly the Pacific Rim countries that are now more capitalistic than we, will fare far better over the next months and that should be reflected in the value of International stocks.
I'd like to hear your thoughts on the subject.