All this talk about loading up on canned food is a joke
I made a few modifications to my house this weekend. Pretty sweet huh? I'm all set for armageddon.
I have seen a number of articles out there, even one right here at TMF, which advise people to load up on canned food, bottled water, weapons, etc and to move out into the wilderness because social unrest is coming. You have got to be kidding me. Articles like this hurt this site's credibility. Why bother reading about investing if you think that things are going to get that bad because every investment outside of flashlights, batteries, generators, and cool ninja swords are going to be completely worthless.
Does anyone realize that unemployment in the United States was four times higher than it is right now less than 100 years ago and there wasn't anything even close to prolonged, widespread violence? I'm about as pessimistic about the current state of the economy as anyone I know and I still think that all this talk about loading up on canned food, etc is absurd. Do I think that one should have a huge reserve of cash on hand in case they lose their job? Absolutely. I'm in the process of increasing the size of my cash reserve right now. I also am moving my investments to the top of the capital structure, bonds, rather than common stock. Do I think that society as we currently know it will cease to exist? Give me a break.