Originally Posted by
zorba
Drone,
You make a good point ..... NZO would initially be a good bet should oil run up to $200 - $300 .....
But what happens after that, does the world head into a serious economic meltdown ?
If so will the demand for oil collapse, or at least fall way below current supply capability ?
If that happens oil price should also collapse or seriously reduce and take many oilers with it. Its all a huge landscape of uncertainty, and coking coal miners will also be hit, so no doubt NZO and PRC would both take some serious hits ......
So if oil is heading for $200 - $300, then maybe one should be starting to cash up and get out before a global meltdown.
Maybe since it seems that inflation adjusted bonds no longer available (see Possum's post above), maybe then best option as McDunk suggests is GOLD BARS !!
Alternatively if deep recession and monetary deflation is the outcome then just having the funds sitting in Kiwi Bonds earning interest may also be safe and useful, maybe along with a stash of gold bars for diversification.
Lots of "maybes", its all very unpredictable, where will it all end ....
If the Iranians keep on firing rockets and the Israeli keep up their war games, its going to be a serious bloody mess, and if the Strait of Hormuz gets blocked for any length of time then the global economy is stuffed, and no doubt huge numbers of pension funds and and individual savings will go down the dunny !!
Z
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