Wealth of Americans Wiped Out

At least that's the head line at MarketWatch.

Sad to see many people lose a lot of money the past 7 years due to the Ponzi economy run by the government. The Fed (Federal Reserve Bank) is the worst of the bunch but don't forget
CONgress and Executive branch either.

In 2001/2002 I knew things couldn't continue business as usual so I went all cash when I had a chance to roll over my 401K to IRA early 2002. From Dec '01 I was contributing to S&P 500 index at work just to get emploer matching but I but went all cash in Mar '07. At my current job from Jun '07 I was in international mutual fund until Apr '08 when they changed 401K provider and I went to all cash too.

Starting in summer of 2007 I started to go short in my IRa and I'm now 20% cash and 80% short. Last year I made about 20% and this year I'm just breaking even YTD (thanks to the Obama mortgage rumor I am no longer strongly in the black).

In summary, the past 7 years we didn't go through ups and downs of the market and we've done very well: total return of +48% in 7 years with my rollover IRA. We lost money on our home in TX when we sold in 2005 but the market returns more than made up for that loss!

As for the future I expect further decline of the stock market as people face the realiity of GD2 (Great Depression 2). Whiich is why I'm still 80% short in the market...

Copyright 2009, DannyHSDad, All Rights Reserved.