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by czechdeveloper 142 days ago
Assets traditionally used for such hedge are already massively inflated (look gold an silver price charts), so I'm not sure it's worth it.

This all depends on what timelines you work on, how many assets you are trying to protect.

Alternatively you protect yourself by lowering your dependence on steady income.
2 comments
torginus 142 days ago
Prices of investments will also go down - stocks certainly, although precious metals were traditionally recession proof, we've never had such a bull run on gold/silver in anticipation of recession. My guess is that it won't hold - I've heard that jewelers already refuse to take precious metals at anything near market value.
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hirako2000 141 days ago
It's euphoria at this stage.

Ads from the World Gold Council are becoming very frequent, targeting consumers. That must mean something (looking for exit liquidity)

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SchwKatze 142 days ago
Yeah, as a SWE I just got sufficient money to pay my expenses AND have some to invest quite recently (about 2/1 months ago), but I basically froze the money instead of investing because everything seems overvalued and about to fall (even silver and gold).
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throwaway920102 141 days ago
Be careful, I would not stay 100% invested or 100% uninvested. The market can remain in an Everything bubble for far longer than we expect (see: since 2008). It can be a lot harder psychologically to get back -into- the market when you're totally out because of sunk cost fallacy (thinking, I gotta wait just a little longer and this thing will finally crash).
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marcyb5st 141 days ago
I would argue that parts of the economy should (hopefully) remain healthy. I mean, AI bubble or not, people need medicine, food, internet access, energy, ... . Invest in that.

Also (not a financial advisor), when a crash occur there is a so called "flight for quality" where people move money they made by cashing out the assets to stable (A+ assets). So look for companies that have solid financials and can weather the storm.

Finally, diversify not only on the industry, but also geographically. EU, Swiss, Asian. I personally stay a bit away from emerging markets stuff as I don't have enough knowledge to make informed decisions (I don't even consider Emerging Market ETFs which should be run by SMEs).

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