How I prepare for 2020 disaster

Important. This is my preparation. Talk to your financial advisor before you commit money.

This article prepares you for some of the predicted disasters in 2020, which may never materialize. However, it also helps you prepare yourself for any future disasters. The disasters may never happen but your actions are the insurance for protecting yourself. Depending on your risk tolerance, allocate 2% to 25% for this effort. I divide the actions into several categories.

Preparing for depreciation of USD.

The government has been printing too many USD and the economy is not that rosy as our government describes as of 2019. As a result, the USD would lose the reserve currency status. We know what happened to U.K. when the pound was replaced by USD.  In preparing for a market plunge, we usually accumulate cash or buying safe Treasury bills. It does not work this time if this cash loses most of its buying power.

Here are my suggestions on what to buy. The current prices are based on around Oct. 1, 2019. They are rounded up for easier to remember and they are used for reference only.  Check the current prices and I am not responsible for any errors.

Action	Related ETF	Current Price
Gold per ounce.		$1,490
Gold coins (Canadian).		$1,590
Gold ETF	GLD	$141
Gold Trust	IAU	$14
Gold miner	RING	$22
Silver per ounce		$17
Silver (American Eagle)		$26
Silver Trust	SLV	$16
Bitcoin (too risky for me)		$8,000
Copper Miners (risky)	COPX	$17
Commodity-indexed Trust	GSG	$15
Commodities Select Strategy	COMT	$44
Material	IYM	$92
Oil	USO	$12
	OIL	$11
Oil barrel		$55
Europe assets
Contra Total Bond	SAGG	$30
Sell bonds
Short bank stocks	SEF	$21
Reduce cash (CDs, bonds…)

Preparing for prolonged recession

U.S. could be in a prolonged recession from natural disaster such as earthquake in California. The trade wars would bring a global recession. In addition to the above table, more actions are presented here.

Action	Related ETF	Current Price
Sell most U.S. stocks.
Contra ETFs. See above table
Contra ETFs and short technology.
Short U.S. stocks and leave them uncovered.
Short U.S. stocks with HQ in CA.
Oil stocks (outside CA).
Farm stocks (outside CA).
Sell Chinese stocks.
Short Chinese stocks
Swiss stocks or EU currency related.
Short Treasury bond (risky)	TBF	$18.77
Contra ETF DIA	DOG	$52.46
Contra ETF SPY	SH	$26.13
Contra ETF QQQ	PSQ	$27.74
Contra Mid Cap (risky)	MYY	$42.61
Contra Small Cap (risky)	SBB	$32.32

Protecting your lives

Protect yourself from a stage of no government and police protection.

Action

Buy guns or weapons.

Store enough food.

Store enough water.

Store enough wood.

Store enough gasoline and have a generator.