In the last edition of SOTF we explained that 'With Great Change Comes Great Opportunity,' and then, sadists that we are,...-we left you hanging till this edition! That's because we thought, there's no better student than a hungry one... (not a literally hungry student cos that's just cruel!), a mentally hungry student! So, sit up and take notes, champ:
Historically, the greatest fortunes were created in times of great uncertainty and upheaval just like this one.
The richest old-money families (again, not the Kardashians, or Trumps, or Bill Gates of the world!) built their wealth strategically.
The Rothschilds, Saxe-Coburg Gothas (aka, the Windsors), Rockerfellers and others, have ALL secretly capitalized upon the threat of approaching revolutions; coups; wars, recession; and depression, etc. In fact, since this tactic has been so profitable for these families, many historicans now believe, that said families actually instigated many of those events, in an elaborate hegelian dialectic plan, in order to benefit from them. Great patriots such as Smedley Butler, saw through the elaborate lie, and wrote cynically, "war is a racket," in his booklet of the same names.
Today, in learning from their history, we too can benefit by capitalizing on threats facing us right now. How? Stay tuned for the next SOTF. KIDDING!
Step One: SELF EDUCATE!
Right here on this site! We've done all the homework for you to take you through a crash course in financial and geo-political history, law, politics, economics, etc. WE KNOW! WORK!
BUT HEY...-ITS YOUR MONEY! So STOP expecting your stock broker, insurance agent, bank manager or your cousin Vinny to protect and grow it for you! As the last financial crisis proved, all those well-meaning, 'Booyah' shouting, TV-money-pundits didn't have a clue until it was too late and they were crying their crocodile tears into America's debt cereal!
Step Two: TRULY DIVERSIFY!
True Diversification is the ONLY wisdom in an uncertain economic future!
Despite what any slick investment broker tells you, please know that you are not truly diversified just because you may have mutual funds!
Mutual funds give you a dangerous illusion of diversity, ultimately leaving you unprotected during downturns despite what they promise. No matter how 'spread out' they seem between health stocks, mining certificates, energy stocks etc, they are ALL investment instruments concentrated or over-diversified in ONE security class...-paper! The same paper, in the same paper market, which many experts now agree is rigged. (see NY Post link)
The only way to truly diversify is to invest in different security classes, and/or in different sectors, including: precious metals; natural fancy colored diamonds; and income-producing real estate (in diverse economies or locales). This is the tried and true method of wealth creation applied by nobility, the Vatican and old-money families for millennia. If you are not doing this, then you are neither truly diversified; nor investing effectively; and in fact, you are risking both your current wealth, and future wealth creation ability. Now is the time to fix that!
STEP THREE: BUY NOW!
BUT WHY? That answer and more in your next SOTF!