I've always done well when the big corporations, and their stock markets, do poorly.
No complaints here.

When Wall Street does poorly,
Main Street gains an oppertunity to fill the gaps.
The strong survive.

Yes I must admit I noticed a sharp drop this morning but my fund is still 5% up on the previous twelve months.

http://funds.ft.com/aviva/AvivaLifePensionsUKLtd/NUAGRT

It doesn't work that way.

If there is a wide spread collapse, none of that, other than land, will have any value. Certainty not gold. Gold has no intrinsic value. Gold is only valuable because people agree to its value. In a catastrophic collapse, all deals are null and void.

If I have a 14 pound bar of gold and am very hungry and you have a loaf of bread, exactly how much is my gold worth? If I am lucky you will sell me half your loaf for my gold. The more hungry I am, the more attractive the deal will be.

Gold is only valuable if there is a limited collapse. Say the EU has a huge financial collapse, I might be able to take my gold to South America and exchange it. The problem is that since the world's economy is so linked, the chances of a catastrophic local collapse while the other economies are still functioning is becoming lower.

I have an open offer for all the gold hoarders out there. When the world wide collapse comes, I will be glad to sell you my food for your gold... at the going rate. :D

Like the lady that wheeled in her barrel of money for a loaf of bread, they took the wheelbarrow.

I think we're headed for some rough times in the next few years. The problem with a global economy corporations stop working for the nations they belong.

It always has, and still does, for me.

There is one thing worth mentioning. While things most certainly don't look calming at the present moment (with talk of a second European credit crunch especially), we should never forget that "If men define situations as real, they are real in their consequence" (the Thomas theorem). As of right now, everything, at least to me, seems like a self-fulfilling prophecy. The more we talk about saving countries, the more the contagion spreads; the more there is talk about recovery, the worst the economic results are.

So gentlemen, if it's not too much to ask, remain positive. At least until the missiles start flying :D

Some would say now is the time to buy whilst prices are low.

As one financial 'expert' said on Sky News this morning...

"Buy from those who are weak or frightened then sell to those who are brave when the prices rise"

Tell that to the stockbrokers... :doh:


EDIT:

XD

As a crisis escalates, the need for careful, deliberate, disciplined action must outweigh the urge to panic.

Is the current situation bad? Yes. Will it get any better at all by panicking? Probably not.

Write off all the world's debts as suggested by some experts.

Get defensive. Go for dividend paying stocks and solid, reliable, non-cyclical names. Johnson and Johnson, Wal Mart, Coca Cola etc.

This too, shall pass.