So I am trying to determine the smartest investment strategy. I have been following Eric Janzen iTulip & the book "America's Bubble Economy" & also Peter Schiff and Euro Pacific Capital. I agree with both these resources and the basic premise that the US has a bubble economy and the dollar is headed for failure is correct. Both sources also recommend investing in gold, which I think also makes sense.Where iTulip and Europac seem to diverge is iTulip recommends largely going into Euro currency & Europac into high-dividend stocks in Asia (to profit from a strong China) and perhaps a select few European dividend stocks. iTulip assumes the European economy will stay stronger? I guess in a downturn and Europac assumes there will be the long heralded "decoupling" of the Chinese economy and the US. But are not both these stratagies very risky? Aren't both Asian and Euro economies going to suffer badly in a US downturn (they may be less in debt but are following the same wrongheaded policies!). Is the theory these economies will come back more quickly than the US?In speaking with other investment advisers - they recommended another option: short US Treasuries. This seems to make a lot more sense than investing in Euros or trying to pick individual stocks. I guess there are instruments that allow you to short the Treasuries. My understanding is this is preferable to shorting the dollar since you need to short the dollar in another currency - and which currency to pick?Any thoughts?
I think the theory is (with EuroPac) that although China has not decoupled with the US, and is in fact continuing to purchase US bonds and so forth, that ultimately they will be forced to do so or drown. Because the manufacturing base in China is so strong, and without trillions of dollars in debt, it will necessarily recoup its losses faster than the US.
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