Here's an email i sent off to my dad because he didn't really get why i'm not all hype about buying stocks now that the market's low.
the major concern i have w/ the future of the economy is the fact that the oceans are becoming depleted of fish, forests are being depleted, and we are running out of clean water and healthy soil. Basically, the economy is built on growth, but the environment and the resources it provides are reaching their limits. Although you can say that "in the long run" the trends show that the markets will recover and continue to grow, i feel like the economy (and humanity) are heading into completely uncharted waters. There is no precedent set for what will happen if and when fisheries collapse, if and when food shortages become more and more commonplace, when oil and cheap energy which our socieities are built on become more and more expensieve, and less and less availalbe for the masses.
Also, it is accepted that industry has changed the global climate enough that we can expect rising sea levels, and more hurricanes, tsunamis and tornados. Though this has sadly boosted the economy in the past, i think in the future the financial strain they may have on any and all countries (and subsequent mass migration of peoples) could be terrible.
The scientists know that these changes are already happening in our lifetime. I don't know much about money, but i feel that consumerism and capitalism, in the end, may be remembered for their short-sightedness. i can't say how my concerns would play out in the stock markets, but i can't imagine it would be good. Part of me thinks there could be a financial crash that will never recover in my lifetime, or at least not to its present format.
As you say, hope for the best, prepare for the worst. In a best case scenario, i think the concerns mentioned above will not happen in a quick or definitive way. Rather, they will happen slowly but surely, but in a way where i personally won't suffer the fall-out so much. Maybe the stocks i have will be lucky enough to continue appreciating in my lifetime.
For a worst case scenario, maybe i should be investing my money in a piece of property which has access to local agriculture and energy.
Anyhow, thanks for taking my rmb bk to Canada and helping look after my investments. For now i'm happy to follow yr advice re: investments, espectially as i don't know what else to do with my money for now.
Obviously i should do more research about money and stuff, but all the above is my gut-feeling about what the future may hold. What do you think? I know it's a little Doom and Gloom, but i don't think it's unrealistic.
Ok. talk to you soon.