I find myself in the middle- not willing to believe this y2k thing is just big hype, but also not willing to move to the mountains quite yet. I think the end result will probably be in that "middle ground". There have been postings here about stocking up on precious metals, and I'm sure most of us know about the y2k stocks that are supposedly fixing these things. Does anyone else have any ideas about ways to profit in the next year and a half? Please consider this a very hypothetical question, where the results of the year 2000 are not so cataclysmic ("middle ground", if you will).

-- Troy Mcclure (Troymcclure@aol.com), April 23, 1998

Answers

Troy,

If you are betting on a "middle ground" scenario, one of the easiest things to do is to sell completely out of the stock market and then buy back into an index fund when the (I think inevitable) Y2K induced correction hits. Note I say "correction" not "crash" since we're only speculating about a middling impact from Y2K. But even a downward correction of 10-15% would earn you a tidy sum. Also one could buy the precious metals now and sell when Y2K fear drives the price up, but before people realize that it's not going to be so bad--again, assuming it's a middle ground result; maybe things will be so bad.

Best regards,

David

-- David Palm (djpalm@compuserve.com), April 23, 1998.

If you accept that there is going to be a significant period of domestic power supply problems, then generators and inverters are going to be much in demand. You may be able to buy now and sell then at many times the price in real terms. You may also be able to go into business selling and installing them for other people.

If you accept that there are likely to be manufacturing and distribution problems particularly for the more highly manufactured forms of food, stockpiling cookies, candy and chocolate bars, breakfast cereal, etc. may also be profitable.

And yes - whatever else you decide, get out of the stockmarket before its too late!

BTW I don't believe any Y2K stock is going to make any money for its shareholders. All the profit made in 1999 will be paid out to lawyers in 2000! In fact, I suspect that Y2K litigation will drag very many companies under, the smart money will be in new post-2000 start-up companies that don't have any liabilities. (another opportunity?)

-- Nigel Arnot (nra@maxwell.ph.kcl.ac.uk), April 23, 1998.