I have gone on record here and here to rotate out of stocks and bonds and into domains and websites. I am sticking to this call. In fact, today was what traders call a “stick save”, i.e. where we narrowly avoided busting through 10,000 on the Dow to the downside.
One pundit has called the job of the fed walking on a tightrope in a hurricane. Indeed. Hyperinflation risk is one thing that I think is becoming a legitimate topic of conversation. For calibration, the Dow-Gold ratio has historically been as low as 1.0. We could see it again. Not kidding. Run the math on that one for a moment and you will see the implied volatility associated with being on the wrong side of the inflation-deflation debate as policymakers run out of choices without consequences.
Here a brief primer on “Stick Save” for the uninitiated:
As for me, since I don’t have a ton of confidence in the stick-save as a strategy, I am sticking with domains and websites as a portable store of value that can preserve wealth. Ask your investment advisor if he has a better idea. I don’t.