Investing Wisely in an Uncertain World

 For my part, whatever anguish of spirit it might cost, I am
willing to know the whole truth; to know the
worst, and to provide for it.
 
Patrick Henry (1736-1799)

"We are apt to close our eyes against a painful truth," said Patrick Henry. Global tensions and economic distortions have created an investment environment that is making it extremely difficult for investors to safely navigate with conventional strategies from Wall Street and mainstream brokerage firms. It is perhaps a painful truth that the U.S. economy is about to implode and cause considerable loss and suffering for millions of people who have put their trust in banks, brokers, and traditional business models. But we can expect that these conditions will only worsen as geopolitical threats and America’s fiscal bankruptcy become increasingly more apparent in the days to come.

So what can prudent investors do in these uncertain times? What is your best overall strategy for financial survival and profitability? Only you can make those kinds of decisions. But they must be based on knowledge and truth – the whole truth – so that you can make adequate provision for you and your loved ones. The Bible says, “A prudent man sees evil and hides himself, the naïve proceed and pay the penalty” (Pro. 27:12). And this means that we must become "contrarian" investors and be willing to go against the herd instinct.

Should we really trust political speeches and economic commentary in the media to protect our financial assets? We need to be wise and consider this historical fact. In his Inaugural Address in 1929, President Herbert Hoover assured, “In no nation are the fruits of accomplishment more secure. I have no fears for the future of our country.”  Later in that same year, legendary economist and investor Irving Fisher proclaimed, “Stock prices have reached what looks like a permanently high plateau….I expect to see the stock market a good deal higher within a few months.”  As we all know, the Great Depression soon followed and it crushed our nation into financial ruin.

George Bernard Shaw once commented, “If all the economists were laid end to end, they would not reach a conclusion.”  Even Wall Street economist John Kenneth Galbraith said, “There are two kinds of forecasters; those who don’t know, and those who don’t know they don’t know.”  The majority of the American people are simply dumbed-down and confused when it comes to personal investment strategies and portfolio management.

We need to wake up and realize that we are entering into some critical times, and it is necessary that we take personal responsibility for securing our financial survival. Dr. Laurence J. Kotlikoff, a Boston University economist who deserves great respect, recently reported that our “fiscal gap” in America now totals almost $202 trillion dollars based on future entitlements and obligations! This is one economist that really knows what he is forecasting. In his book The Coming Generational Storm written with Scott Burns, the authors say this:

"We believe that conventional financial services can do more harm than good – like the person who goes to an emergency room for a broken arm but dies of a hospital-acquired staph infection, much of the “treatment” offered by the retirement-investment complex represents a major threat to the survival of the investing public. Patients who accept a common placebo would lead a financially healthier life."

Dr. Kotlikoff and Burns cite three reasons for financial malinvestment today: false promises, wrong targets, and excessive fees. In other words, wrong assumptions are made concerning savings rates, return on investment, and future economic stability without considering risk variables, which I have carefully outlined in my book. In addition, clients are charged excessive fees for retaining this “service.”  As Woody Allen once joked, “Brokers will invest your money until it is all gone!” 

What people need is not a common placebo, but common sense. Enough common sense to realize that
America’s financial reckoning day is soon approaching, and there is a great need for some sensible diversification and asset allocation. We simply cannot sit idly by and continue to trust in the conventional wisdom of the traditional retirement-investment complex and the Wall Street financial nexus of bankers and brokerage firms. The current financial and monetary crisis that has gripped our nation since 2008 was completely off of the radar for these so-called “experts” in the field of finance, and now we are expected to look to these same people for financial advice. This is a mockery of common sense.

Our nation’s fiscal bankruptcy is at our door. As I mentioned, you need to take personal responsibility for securing your financial survival. At IDP Consulting Group we are prepared to assist you in these uncertain times in the critical areas of diversification and contingency planning. You are invited to browse our new website for some practical advice on how to acquire physical gold and silver and how to protect your retirement savings. In addition, you are encouraged to check out our recommended website links, my weekly blog for timely news updates and how to obtain a copy of my book and special reports.

Charles H. Coppes, Senior Investment Counselor

Author & Lecturer, America's Financial Reckoning Day