There is so much bad news out there that I’m going to lead with a bunch of great news, with brevity worthy of prime-time news soundbites.
1. You can survive this crash and the next, and even take advantage of it, if you do a few simple things.
2. I will tell you what they are.
Here’s what they are:
1. Be willing to question what you already are certain of and open your mind to new ideas.
2. Become aware of what is going on around you. This may involve stepping off life’s treadmill for a minute to pay some attention or even learn something.
3. Position yourself appropriately, so you are ready to execute on #1 above. That’s it.
So, why should anyone listen to me?
I’ve been consistently right.
Even earlier than my February 2020 newsletter I identified inflation as a major threat and later explained why printing money is legal counterfeiting and creates inflation. The Fed and the Biden administration got that stupendously wrong. I warned against a major stock market crash and explained why the market was so overvalued. I cited the repeated failures of our institutions we used to trust but no longer can – even before the disastrous withdrawal from Afghanistan, the diplomatic and policy failures that led to the war in Ukraine,** the baby formula crisis, the historical run-up in inflation, and this June 2022 Wall Street article (quoted below).
I explained how volatility harms your portfolio, but that you can actually use volatility to your advantage. Compare that to the mantra you may have been heeding, that “the stock market always goes up.” I even commented on the potential danger when Ukraine elected a comedian president in April 2019, 3 years before the current crisis (see below).
Looking back validates what I’ve said about several issues. Looking forward, here’s what else will be in the headlines: taxes, medical costs, and aging. Taxes are going up, significantly. It's simple math.
Medical costs will climb faster than inflation. And “demographics” will be a buzzword. 70 to 100 million baby boomers and generation X’ers will be retiring over the next 20 years, and the costs associated with their care, both medically and financially, will be astronomical. You’ll either be a retiree facing those costs, you’ll be taxed to cover those costs, or both.
People are worried. Yet my clients are positioning themselves to take advantage of these circumstances rather than be the victims.
What would you like to do?
Contact us for a free 15-minute phone consultation.
When Progressives Fail, Inflation Edition
Wall Street Journal, June 1st, 2022
“One hallmark of our era is the collapse of public trust in government and experts of all kinds. But it’s hard to fault the public when so many experts and their policies have failed in such spectacular fashion.”
For several years, no matter what the experts said, they were listened to and legitimized because everyone was making money. I argue that is largely because of massive manipulation of markets, money printing, and short-term thinking. In any case, we’re about to find out. The stock market has been on a steady decline, cryptocurrency is cratering, inflation is skyrocketing, 401(k)s are looking like 301(k)s, and the price of home ownership is intensifying.
**Arieff Consulting’s then-analysis of
“Comedian Elected President of Ukraine, Exit Polls Show”
Georgi Kantchev, Wall Street Journal, April 22, 2019
“Ukraine is an important nation. It is the stage that Russia has used to challenge the rest of the world as it annexes land and even detains Ukrainian soldiers... Ukraine could easily be a flashpoint that leads to severe regional or global conflict. And now, a 41-year-old comedian turned actor is President. You can’t make this up... This is an example of dangerous regional politics that could lead to larger conflict, affecting financial markets worldwide.”
Who do You Believe? – June 2022 (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
* Dividends are not guaranteed. However, companies we use have paid dividends without fair for more than 100 consecutive years.
Disclaimer: This newsletter represents the opinion of Arieff Consulting, Inc, and does not constitute financial, tax, or legal advice.