Sit in cash – do nothing

If you are a regular reader of Farmann, as I assume you are, by now you have sold off everything as I have stressed since November 2007 and is sitting in diversified currency cash (and some gold).
You might also have shorted the market as I have advised for investors who know what they are doing in shorting the market.

During the last few months we have looked for things to buy, as we have said here on Farmann:
We have looked at consumable commodities and turned it down – it is a bubble.
We have looked at oil and turned it down – it is in a bubble.
We have looked at gold and turned it down – it is in a bubble.
We have looked at silver and turned it down – it is in a bigger bubble than oil.
Dollar – heading for crash.
Euro – overvalued.

We advised to consider buying Statoil as a hedge against another oil all time high-test and war with Iran.
Statoil is still a god hedge against this, and even better now since the price has fallen.
At some point we might actually go in and buy some Statoil.

We advised to short or buy put in Euro sone commodity producers, but to look around to find good deals.
Well, we have found no good deals, since bad news is already priced in.

There seems to be nowhere to go, nowhere to put ones money!
And this might actually be the case.
So it might be time to think differently about your money.
Put your money to work in yourself, yes – either by investing in yourself as a person or in your own run business.
As in taking a vacation.
As in education.
As in taking care of your current long investments.
As in taking care of the family.
As in reading up on stuff.
As in giving some away.

As in thinking hard about what the economy will look like in the next stage we are now entering into and aligning your person, business and portfolio to it.

Stay liquid though. There will be a time to invest again:
- If gold falls below USD 600, start accumulating carefully.
- If silver falls below USD 10, the same.
- If the DOW falls below 6000, consider accumulating.
- After the virtual implosion if the Chinese market sometime in 2010-2011, buy some.
- Buy US rental properties with leverage sometime in 2010.

But it is a long long way down this well, and by the time we reach it we will be scared shit less and might now dare to do anything.

It has to be retreated, again and again, during the next few years that diversified cash is the place to be.
We favor doing nothing.

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