In today’s world, there’s no lack of risk.
First, there are macroeconomic risks.
Ultra-low interest rates have economies completely addicted to cheap credit. Governments’ finances are in pitiful shape. And don’t forget about the Bolsheviks on the march, with their grandiose spending plans and tax increases.
Second, financial markets are risky.
Sky-high stock prices give you limited upside and tremendous downside when the next correction begins. And your equities may actually be a liability of your broker, without a real insurance backstop.
Third, the banking system is riskier than most think. Banks offer zero transparency, many have inadequate levels of capital and liquidity plus derivatives exposure, and they have a culture of suspicion and deceit… and you’re the one treated like a criminal.
And finally, there’s the ongoing pension crisis. As I’ve stated numerous times, Social Security’s finances are in real trouble. And federal, state and local pension funds are investing in risky markets, like corporate junk bonds.
All these risks could spell financial disaster. But if you’re prepared, you can successfully counter these risks.
In this month’s letter, I’ll delve into all these risks above in more detail. And I’ll present some commonsense solutions that can protect your hard-earned wealth… no matter what happens next.
First, there are macroeconomic risks.
Ultra-low interest rates have economies completely addicted to cheap credit. Governments’ finances are in pitiful shape. And don’t forget about the Bolsheviks on the march, with their grandiose spending plans and tax increases.
Second, financial markets are risky.
Sky-high stock prices give you limited upside and tremendous downside when the next correction begins. And your equities may actually be a liability of your broker, without a real insurance backstop.
Third, the banking system is riskier than most think. Banks offer zero transparency, many have inadequate levels of capital and liquidity plus derivatives exposure, and they have a culture of suspicion and deceit… and you’re the one treated like a criminal.
And finally, there’s the ongoing pension crisis. As I’ve stated numerous times, Social Security’s finances are in real trouble. And federal, state and local pension funds are investing in risky markets, like corporate junk bonds.
All these risks could spell financial disaster. But if you’re prepared, you can successfully counter these risks.
In this month’s letter, I’ll delve into all these risks above in more detail. And I’ll present some commonsense solutions that can protect your hard-earned wealth… no matter what happens next.
In today’s world, there’s no lack of risk. First, there are macroeconomic risks. Ultra-low interest rates have economies completely addicted to cheap credit. Governments’ finances are in pitiful shape. And don’t forget about the Bolsheviks on the march, with their grandiose spending plans and tax increases. Second, financial markets are risky. Sky-high stock prices give…
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