In these extraordinary times, we should be questioning everything we've ever "known" to be true, including the financial assumptions that have been presented to us as gospel throughout the years. Some may hold true. Some won’t.
Here’s one:
YOU CAN’T TIME THE MARKET!
Why not? I say you can.
True, it is very difficult to know when the market is going to crash. But will it crash? Of course. It’s crashed multiple times since 2000, and it sure seems to be happening more frequently and severely, doesn’t it?
Can you tell what the market looks like after a crash? Do you need a Ph.D. in economics to know what a financial slaughter looks like? Of course not.
In 2002, the S&P plunged 23% to complete the Dotcom crash, a 46% overall drop. In 2008, the market tanked 38.5% in one year, and in 2020, numerous oil & gas, cruise and airline companies were down around 70%!
Were you able to take advantage of these opportunities, or were you dollar cost averaging and riding the roller coaster as you’ve always been taught, comforting yourself with the trite reassurance that you had time to “make it all back?” I wonder if when Warren Buffet was 40, he followed that dogma in his long-term financial strategy.
By the way, aren’t California and New York supposed to be the utopic examples of government regulation keeping everyone safe?
Well, at least rich people are safe. In the case of SVB, the government certainly took care of depositors, even the uninsured ones, covering MILLIONS in potential losses for Silicon Valley entrepreneurs and well-heeled intellectuals – i.e. progressive voting elites – and placing the future costs, once again, on your children and grandchildren.
The latest despicable event in the banking business is the plan to have you, the responsible, successful, credit-worthy citizen that you are, subsidize the bad credit of other homebuyers.
This means that if you have a great credit score, your mortgage rate will go up so that people with poor credit scores can have their rates go down! What??
This is literally punishing people for being financially successful and responsible while rewarding the opposite. And like all perversely created legislation, it will achieve the opposite effect. Because if more people with poor credit – and people with poor credit also tend to be poorer – have access to more credit through artificially decreased mortgage rates, won’t that actually in fact drive home prices higher?
I actually need to be fair to the banks. It wasn’t their idea to flip credit scores upside down, but the Government’s. It is not really a banking system, but a government-manipulated, government-backed, and therefore taxpayer-backed banking system. Bank deposits would probably be a lot safer right now if not for government policy!
More people are waking up. According to Gallop, 48% of adults are now worried about the safety of their money in the banks, with 19% being “extremely worried.”
The 20% “not worried at all” must be bankers!
Unfortunately, most Americans have no idea what they can do about it, even if they realize that our fiat currency is merely paper, backed in nothing, that stands only on its own credibility... until it doesn’t.
But you do. You can Become Your Own Banker. You can Bank on Yourself. You can insulate yourself from the disastrous consequences of decades of failed leadership and financial recklessness. And you can profit from it all by arranging your finances in a way that positions you to take advantage of it!
I should thank the banks. They are driving more business my way than any amount of advertising could ever do.
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OTHER SOURCES:
This crisis didn't originate in 2023, or during Covid, or even in 2008. It started in 1913 when "The Creature from Jekyll Island"
was born, The Federal Reserve!
For a shorter (and free) read, download Carlos Lara's 11 page document, "Bank Deposits are Risky - Now More than Ever," written in 2014, 9 YEARS AGO! This all is entirely predictable!
No, the Banks are Not Safe! – May 2023 (Pdf Download)
Contact us for a free 15-minute phone consultation.
Thank you for your time and for taking control of your financial future!
Sincerely,
Sam Arieff
Arieff Consulting
(904) 478-0102
Disclaimer: This newsletter represents the opinion of Arieff Consulting, Inc, and does not constitute financial, tax, or legal advice.