As a money manager, I am not in the business of making predictions—luck is not an investment plan, but rather, in MANAGING THE RISK of tomorrow’s unknowable circumstances that may affect clients’ wealth.
Perhaps the most valuable tool of a money manager is just simple observation. So I can’t help but notice the possibilities of…….a crashing U.S. dollar, crushing U.S. national debt, hyper commodity and price inflation, a collapse of the global financial system, a real estate market mired in quicksand, 17% effective U.S. unemployment, global currency and trade wars….you get the point.
So the case that I make about tomorrow’s possible disasters is that there are investment strategies and assets that may provide protection that may as well represent prudent current and long-term investments--even if none or only a few disasters materialize. A diversification of wealth into such strategies and assets thus may bring sense to the old saying—“Better Safe Than Sorry.”
By the way, diversification doesn’t mean “shuffling” monies into a greater number of the same asset classes. Rather, it may mean owning assets and employing strategies that you may never have imagined you would.
A warning—it is difficult to change old habit patterns of thinking either because of our own psychology or because of the advice that we receive. Considering different assets or strategies that an investor may be unfamiliar with is not easy. Times certainly have changed through the years and over the decades—I would say, necessitating a flexibility and evolution to investing and requiring unfamiliar solutions.
So, you have to ask yourself a question [regarding the positioning of your wealth]—are you feeling lucky, or prepared?
(Tom Fyler is President of Commodities & Securities, Inc., a Registered Investment Advisor. Mr. Fyler is also the Principal of a Futures investment management firm, “Wadsworth T. Fyler, Jr.”, registered as a Commodity Trading Advisor ("CTA") with the Commodity Futures Trading Commission ("CFTC") and a Member of the National Futures Association ("NFA"). He may be contacted at info@EssentialsInvesting.com)
Risk Disclosure: This communication is for informational purposes only and should not be construed as containing or providing specific investment or financial advice. Readers should be aware that there is risk of loss of some or all funds when investing in stocks, bonds, mutual funds, ETFs, real estate, commodities and/or currencies any of which may not be appropriate for all investors, and that there is a risk of loss when using any particular trading or investing strategy. This information may contain statements or forward-looking propositions that should be understood as the opinion, belief or preference of the writer.
Disclosure: No Positions
Disclosure: No Positions