This is a landmark time.
Just look around you. Look at what’s happening in the world. Clearly, you will see that we are nearing a tipping point for us all.
Thirteen years minus nine days ago, a small group of terrorists attacked the very heart of our nation, setting off a tragic chain of events that have continued to ricochet through time, with a tremendous cost in life and treasure …
The fall of Saddam Hussein …The U.S. invasion of Iraq …
The emergence of al-Qaeda in Iraq, and now …
The rise of ISIS, the most brutal, most powerful terrorist organization of all time, bringing us around full circle to the danger of larger terrorist attacks on our soil.
At the same time, in parallel to the global war on terror, we’ve also had a global war on financial crisis.
Fifteen years ago, well before al-Qaeda’s first attacks on America, our tech stocks began to crumble. Over $5 trillion in equity value was wiped out. Our entire economy was temporarily paralyzed. And what’s worse, that crisis set off a tragic chain of economic events that also continue to ricochet through time …
Radical interest-rate cuts …
A great housing bubble — and BUST …
The emergence of a deadly debt crisis …
And now, the most risky and largest Fed money-printing operation of all time.
This chain of events has made the rich — especially wealthy Wall Street institutions — richer. But it has also wiped out vast amounts of invested wealth; the hard-earned savings of millions of everyday Americans.
It has propelled many investors to take unprecedented risks. And it is likely to bring us around full circle to the brink of another, potentially bigger, financial crisis.
So there you have it. The global war on terror. The global war on financial crisis. Two parallel and powerful historical sequences that are gaining momentum and reaching a crescendo.
Just bear in mind that not all is black and white.
For example, in a simplistic view of the world, global conflicts would automatically impact U.S.markets negatively. But that’s not always the case.
In fact, as Larry Edelson has correctly pointed out, right now, troubles overseas are driving large sums of fear money into the U.S. stock market, pushing our stock prices UP — not down.
And as Mike Larson has written, some of that flight capital is also flowing into key U.S. sectors, such as real estate and energy.
This is one reason why our markets have been going up. Another reason is the Federal Reserve. Years ago, bad economic or political news meant bad news for investors — a rationale for avoiding stocks.
But today, the Fed uses bad news as an excuse to pump up the stock market and inflate the economy even more — with tactics that would have been unthinkable years ago. Plus, some stocks have been soaring regardless of the fear money or Fed money, based on their own merits.
One of our readers, John R. has done an excellent job of voicing our readers’ most urgent concerns:
“I am 78 years old and retired after roughly 35 years in the investment management business. There are so many things that worry me, domestically, financially, as well as in the global situation, I don’t know where to start. We have:
“1. Debt levels never seen before with a slim chance or intent to pay them back.
“2. The threat of the US dollar losing its reserve currency status sooner than most people now predict.
“3. A worsening geopolitical situation throughout the world, and no evident world leader stepping up.
“4. For the first time in my life, the threat of radical Islamic terrorism right here in the US.
“5. A nation that’s more divided than any time since the American Civil War.”
John, I couldn’t have said it better myself.
In this environment, the first pitfall to avoid is the thousands of stocks in the world today that seem attractive on the surface, but, in reality, are pure garbage. They’re illiquid, poorly managed, and high risk. And I’d like to send you a complete list of them.
The second pitfall is the traditional buy-and-hold approach to investing. If you want to avoid portfolio-busting losses in a world with tremendous uncertainties, it’s simply not wise.
But the third pitfall is to simply withdraw from investing entirely, even while there are so many new opportunities to build your wealth.
My Ultimate Portfolio
More so than ever before, with the world in constant turmoil and Washington in eternal gridlock, the onus for defining your destiny falls squarely on you.
Wealth building is no longer an option; it’s a must. You will need money in order to insulate yourself from the geopolitical and political threats, to live in the world’s safest places, to be less dependent on the job market, to better secure your retirement, and to preserve your personal freedoms.
That’s what my goal is, both for myself and for our readers. And next up, I plan to give you what I believe is the ultimate wealth-building strategy to achieve all of the above.
This is a critical time for all of us. But by working together, we can get through the tumultuous days ahead in safety and comfort.
Good luck and God bless!