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Be the Recipient not the Donor
Whether you are 19 or 91 you can participate in the greatest transfer of wealth mankind has ever experienced. This is an opportunity that has never presented itself before and all you need to do is be on the right side of the trade.
We are on the praecipe of a massive reset in the financial world which will include a global economic collapse that may very well rival, or even beat the damage caused in 1929 when the US stock market dropped 89% before bottoming in 1932. It took 25 years until the market returned to it’s 1929 high. This crash set off the Great Depression as it wiped out most of the middle class leaving once wealthy families destitute. Yet more millionaires in history were created by that one event for investors that were positioned correctly.
I have no idea if this event will happen in 4 weeks, 4 months or 4 years but it is no longer a matter of “if”, but rather “when” and I would rather be early to the table than late because when the damn breaks it will happen quick. I tell people, the thief comes in the night for a reason, it is when you least expect him.
We could possibly see the markets rally from this small 10% correction we have been experiencing. Many advisors and investors believe it will. Confidence and complacency that the Central Banks and the Government will fix everything is reminiscent of what you read about the lead up to 1929.
To be fair, the last two corrections, the Tech Bubble of 1999, the Financial Crisis of 2008 and the weeks long Crash of 2020 look like a mere bump on the road compared to 1929. But it is the experience of the three 40% crashes in this millennium that investors draw on for their experiences that cause the complacency.
And the vast majority of investors, mutual funds and pension funds utilize the “Buy and Hold” mantra created by Economist Harry Markowitz introduced in 1952. Worthy to note that since 1952 governments worldwide have accumulated unsustainable debt and have debased their currencies through massive printing of their paper currencies that Buy and Hold would likely make no sense to Markowitz today. Yet, all of the institutions who put out economic forecasts along with the mutual fund and pension fund industry are backed into a corner where they have to continue to preach and recommend a broken and potentially destructive money management system for their clients.
Why are they backed into a corner you ask? Because they own trillions upon trillions of stocks and bonds and have no one to sell them to other than you, the retail investor. Afterall, these institutions only exist because of the “other 99%” which is you and me. Without us they only have each other and as such would have nothing (but I suppose they’d be happy 😊)
In my follow up blog I will write about the mess we are in and how we got here and the solutions we have created to help you and your family survive the oncoming tsunami, and yes, even prosper. Remember, wealth never disappears, it simply changes hands, and we don’t want you to be the Donor, we want you to be the Recipient.
In the meantime check out our website www.preservation-capital.com or call us at 306-343-7800 or email us at info@preservation-capital.com to arrange a complementary phone consult or an in house meeting. Don’t allow complacency to affect your financial future.
Daryl Cooper
Founder and President of Preservation Capital
