As the next guy mentioned, I'm also not sure about BND - or bonds in particular - as a good safety net right now.
With the U.S. as heavilty-leveraged as it is now, if the past is any indicator, we're headed for inflation. For the same reasons that we got into this situation in the first place (people buying more home than they could actually afford). Look at the debt-to-income ratio of the country (deficit-to-GDP), and it's a parallel story to the housing boom.
That being said, at current valuations, are even precious metals safe? Who's to say?
I'd be interested in looking for an ETF that trades in TIPS - while the return is almost certainly less, the security offered by it is almost certainly more.
Otherwise, you and I see pretty much eye-to-eye, except I'm more heavily invested in stocks right now (mostly because lots of people over the past few years have been running the opposite way - another Buffett-ism). Nice post!
With the U.S. as heavilty-leveraged as it is now, if the past is any indicator, we're headed for inflation. For the same reasons that we got into this situation in the first place (people buying more home than they could actually afford). Look at the debt-to-income ratio of the country (deficit-to-GDP), and it's a parallel story to the housing boom.
That being said, at current valuations, are even precious metals safe? Who's to say?
I'd be interested in looking for an ETF that trades in TIPS - while the return is almost certainly less, the security offered by it is almost certainly more.
Otherwise, you and I see pretty much eye-to-eye, except I'm more heavily invested in stocks right now (mostly because lots of people over the past few years have been running the opposite way - another Buffett-ism). Nice post!