One of the reasons we went global versus staying in USA markets as US citizens were our experiences of being USA securities and insurance brokers during “Black Monday” of 1987.
At that time, similar to 80%+ of regular individual investors in the USA and elsewhere…most of our clients went into panic mode and lost money by selling what remained of their investment portfolios at the BOTTOM of the market cycle. Less than 1% of our clients INVESTED at the lowest point of the market in relative history. This was totally contrary to our simple concept of “buy low-sell high”. Most people are emotional investors versus rational. Of course, as usual, the DOW was up past the all-time highs in just a matter of months…which we predicted to all our clients. Very few cashed in on this market cycle opportunity. We left the securities industry…and eventually the country.
Now we see the same dynamics happening in the new economic order of cryptocurrencies and coins. Anyone with any sense of calculated risk could have made 100-200% (or much more) gains in cryptos the last year or two. Now the FOMO (fear of missing out) people are sulking in their negative corners claiming that the crypto markets have failed them.
We now observe global fiat and cryptocurrency markets with humor and baited breath. Humanity hasn’t changed at all with the emotional reactions to cryptos and regular markets having huge gyrations and reaching all-time highs in history.
All of us are now victims of media hype online and traditional media of “know nothings” predicting the future valuations of everything from the DOW to BitCoins. Now more than ever, it is important to do your own homework and due diligence versus counting on one of the latest “gurus of finance” predicting futures of fiat or crypto investments. A majority of them are WRONG!
As per the tenets of the article linked above, programmed trading and huge institutional funds are poised to pounce on or liquidate their positions in everything from indexed funds to cryptos. Most of us who are relatively small individual traders/investors are completely at the whim of these technology executed transactions that can send global markets reeling for months or years to come in one or two minutes of automation. The “little guy” is always the last to know about when or why their accounts are going up, down or sideways.
Now add this crypto money age to the equation, and you begin to understand how risky the whole global economy is right now. Central Banks, government-issued fiat currencies, and all financial markets in between are quaking at the thought of being victim to these huge market swings or the new meaning of money.
Throw into the mix a new digital money system that IS coming on like a freight train two seconds from the intersection of traditional understanding, and you can begin to imagine the quiet panic or lack of surety everyone in the markets are operating under. From world banks to failing governments like Venezuela, Brazil, and many African nations…everyone is looking for insurance or bail-outs against impending doom of currencies and financial markets. More people and institutions than ever are looking at commodities (precious metals, currencies, oil & gas, etc) or real estate investments to weather the coming storm that most rational people and institutions know is coming. That is why you are seeing significant movements in cryptos, gold, and global real estate right now.
So…where will you be financially when the global markets and system of money changes irrevocably? Will you be following the sheep, or will you be “eating them”? Do you believe in the masses, or do you believe in being contrary? We believe there is much more hope and upside in being a rational contrarian.
It is time to take more risk. It is time to get out of “buy and hold” mentalities that are no longer relevant. You can’t count on your broker or bank to offer you sound long-term financial advise. Their days are numbered.
So here are a few basic suggestions for survival:
- Diversify all financial positions and reduce your reliance on fiat cash currencies in banks.
- Safely store local currency in cash for a few months overhead while it is still available to get you through the coming financial and bank “panic”
- Take a “risk” in a variety of big and small cryptocurrency positions…and do it internationally and not through “local” exchanges that can be tracked, taxed, and/or “frozen”
- Realize that real estate is not “liquid”, so only invest in what you can live in freely or get income from. When the money system changes, you will not be able to easily sell or gain income from real estate. There will be huge defaults driving values down.
- Have a second and/or third country residency and investments so if your country “freezes up”, you have a backup plan for you and your loved ones.
- Its every man/woman/family for themselves. Do NOT count on your government to take care of you.
If you think these ideas are silly, you might want to check how big blinders you are wearing. Otherwise, stay fluid and solvent on a daily basis. Don’t worry too much about your credit rating, but more about your cash position…and by cash, we INCLUDE some cryptocurrencies.
Money is moving and changing its meaning faster than ever before. Don’t get left behind because of your misplaced complacency and dependency on global or governmental institutions. They are scrambling faster and in more debt than you are.