Investing Wisely in an Uncertain World

 
For my part, whatever anguish of spirit it might cost, I am
willing to know the whole truth; to know the
worst, and to provide for it.

                                -   Patrick Henry (1736-1799)

     "We are apt to close our eyes against a painful truth," said Patrick Henry.  Global tensions and economic distortions have created an investment environment that is making it extremely difficult for investors to safely navigate with conventional strategies from Wall Street and mainstream brokerage firms.  It is perhaps a painful truth that the U.S. economy is about to implode and cause considerable loss and suffering for millions of people who have put their trust in banks, brokers, and traditional business models.  But we can expect that these conditions will only worsen as geopolitical threats and America’s fiscal bankruptcy become increasingly more apparent in the days to come.

 

      So what can prudent investors do in these uncertain times?  What is your best overall strategy for financial survival and profitability?  Only you can make those kinds of decisions.  But they must be based on knowledge and truth – the whole truth – so that you can make adequate provision for you and your loved ones.  The Bible says, “A prudent man sees evil and hides himself, the naïve proceed and pay the penalty” (Pro. 27:12).  And this means that we must become "contrarian" investors and be willing to go against the herd instinct.

      Should we really trust political speeches and economic commentary in the media to protect our financial assets?  We need to be wise and consider this historical fact.  In his Inaugural Address in 1929, President Herbert Hoover assured, “In no nation are the fruits of accomplishment more secure.  I have no fears for the future of our country.”  Later in that same year, legendary economist and investor Irving Fisher proclaimed, “Stock prices have reached what looks like a permanently high plateau….I expect to see the stock market a good deal higher within a few months.”  As we all know, the Great Depression soon followed and it crushed our nation into financial ruin.

      George Bernard Shaw once commented, “If all the economists were laid end to end, they would not reach a conclusion.”  Even Wall Street economist John Kenneth Galbraith said, “There are two kinds of forecasters; those who don’t know, and those who don’t know they don’t know.”  The majority of the American people are simply dumbed-down and confused when it comes to personal investment strategies and portfolio management.  

      We need to wake up and realize that we are entering into some critical times, and it is necessary that we take personal responsibility for securing our financial survival.  Dr. Laurence J. Kotlikoff, a Boston University economist who deserves great respect, recently reported that our “fiscal gap” in America now totals almost $66 trillion dollars based on future entitlements and obligations.   This is one economist that really knows what he is forecasting.  In his book The Coming Generational Storm written with Scott Burns, the authors say this: