Where Does “Diversifying” Get You In Trouble If You Stop There?
Just wanted to talk about diversification today and I don’t mean just, you know, investing in different asset classes, stocks, bonds, mutual funds and stuff like that. I mean, you know, protecting yourself and diversifying where your money’s at. This is our Macro Q and A. We do our Tuesday videos where we talk about some macro strategy that’s from a 30,000-foot view, some global economy type stuff.
Today I really wanted to touch on just diversifying yourself and protecting yourself, giving yourself some insurance against catastrophic things going on. Think about Puerto Rico, the hurricanes there. Think about the east coast hurricanes going on there. Think about the fires in the West. All these things are happening, right? Well, you know, there’s potential for solar flares, EMP attacks, nuclear, this, nuclear that, the grid going down, you know, and on top of all of these weather events going on, right?
Know What’s Coming
Well, there are so many things that we talk about because we don’t talk about those as much, but we talk a lot about, especially on the news channels, about the financial collapse. We talk about, you know, a great depression happening again or a recession, you know, a big correction, which I wouldn’t hundred percent without a doubt a correction is coming if not a crash, depression, recession, wherever it may be. It’s just we are now this month or this month of the year, we’re entering the 10th year of when the recession started 10 years ago in the 2008 recession. So, you know, just thinking about things like that, you know, the market goes in 8 to 10-year cycle. This is the second longest recovery we’ve ever had in history. So what is coming, what, you know, just thinking about those simple principles – buying low, selling high, you know, protecting ourselves, looking at simple market cycles, market dynamics, what’s happening, when things are gonna happen, no one knows when these things are happening.
Warren Buffett doesn’t even know when these things are gonna happen, but knowing that they are coming and protecting yourself or things like that, having some gold and silver on hand and buying a little bit of that. So you’re investing in some protection. That’s money insurance. You know, currency insurance, money insurance, I should say, you’re using currency to buy gold, silver to give yourself insurance for your money. Having some food storage, having some things, and again, these are things not just for a financial collapse like I said, but these are things with all of the different things going on right now.
We’ve seen all over the place all over the country. Financial or a weather-related incident or things like that happening. We’ve got to be smart about that, right? Having some cash on hand, having, you know, maybe a month worth of cash on hand or a few weeks of cash. That way again, you read about stories like we don’t think these things can happen in America, but they’ve happened in Cyprus. They’ve happened in Zimbabwe. All these different places where you know, things happen and you know, some of these books are great. Right down here. These books right here are about, you know, James Rickards. Those are books are about the financial crash coming ahead.