This is not a hypothetical to me, I have about 50K in my 401K currently. Right now I am heavily invested in junior gold miners stock (a recent position taken as gold neared its lower support though currently in the red) In addition to this I am actively trading leveraged funds tracking the S&P 500 based on being a contrarian. I usually do this by comparing the volatility, and the CNN greed/ fear index and going long when the CNN index is at 20 or below and the VIX is over 20, and short or to cash when The vix is below 13, and the greed index is above 90. Basically I am going opposite the thundering herd, and using leverage while I do it. This strategy returned about 45% from May 2012 to the end of the year. I figure since the average investor loses money vs. the market in general then you need only figure out what the average investor thinks, and do the opposite to beat the market. Anyway, long term I'll keep doing this until I see the top line inflation number creep above 5% which is a trigger level at which the FED must either quit easing, or risk hyperinflation, either one will be bad for the markets at which point I'll look to go short, and buy up gold, and some core blue chip businesses in the resulting fire sale. Long story short, I expect a replay of 2008, but maybe a order of magnitude greater, and the only way to beat the game is to "gamble" when the crowd says you'd be absolutely crazy to do so. As for other preparations, I Have tools and some food, but more importantly, means to grow more set aside just in case everything really goes south. Just keep in mind that you should diversify some, especially when we have a meddling government which would seek to put a lid on gold/silver any way necessary......
Jack of all Trades
Precinct Commiteeman Precinct 5 Rock Island Co Illinois
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