The Secrets of the 1%: Join the 99% or Thrive in Economic Turmoil

The average American requires an extra $11,400 annually just to maintain the pre-January 2021 standard of living, it’s evident that the economic landscape is undergoing a seismic shift.
The prevailing inflationary forces are not just affecting the United States but are rippling across the globe, silently eroding the purchasing power of the population.

As someone with a bachelor’s degree in Economics, I confess that conventional education falls short in giving students the understanding of the complexities of real-world economics.

It was only through hands-on experience in Investment Banking and questioning the established norms that I uncovered the harsh realities of the financial system.

Let’s delve into the intricacies of our current economic predicament and how, armed with the right knowledge, you can not only navigate but thrive in these uncertain times.

The Current Economic Situation and Inflation – What is Inflation?

Inflation, the silent predator of your purchasing power, is measured by the Consumer Price Index (CPI).

However, the CPI often misrepresents reality by excluding owned housing units, leading to a distorted perception of inflation’s true impact.

The heart of the issue lies in the central banks’ unchecked creation of new currency, a practice that devalues the currency by increasing its supply.

Since March 2020, The Federal Reserve printed nearly 85% of ALL US Dollars in circulation. To put that in perspective, at the start of 2020 there was ~$4 trillion in circulation.

Now, there is approximately close to $35 TRILLION in circulation, a 775% jump in 4 years and this was also replicated by other central banks around the world in varying scales.

Interestingly, that was just as the ‘worst pandemic of all time’ began, probably just a coincidence right?

There were TWO big deceptions occurring simultaneously but one was even more subtle than the other.

The Cantillon effect accentuates the problem, favoring those in proximity to centers of power, while the average citizen bears the brunt of rising prices and economic uncertainty.

Historical Examples: Lessons from the Past

To comprehend the gravity of our situation, we must turn to history.

Past instances of hyperinflation, from Greece in 1944 to Zimbabwe in 2008, provide stark reminders of how swiftly economic conditions can deteriorate.

The current trajectory, with currencies inflating, housing prices escalating, and stock markets wavering, warrants a proactive approach to safeguard our financial well-being.

Impact on Traditional Savings and Investments

Investments tied to fiat currencies are susceptible to losing their value due to inflation.

Banks, often considered safe havens, become precarious during financial collapses, risking the loss of holdings.

To weather these storms, exploring alternatives decoupled from fiat currency and market volatility becomes imperative.

How to Protect Your Wealth: Strategies for Economic Resilience

Precious Metals: A Time-Tested Haven

Gold and Silver, with their inherent value and limited production, have historically proven resilient during hyper inflationary periods.

Investing in precious metals offers a tangible means to preserve wealth when fiat currencies falter.

*source: https://www.mining.com/how-silver-surged-during-german-hyperinflation-in-the-1920s-91871/

Incorporating Precious Metals into Your Portfolio

Storing precious metals securely, either personally or in trusted vaults, ensures direct access without third-party interference. Diversifying across countries mitigates risks associated with changing laws and regulations.

Recommended Vaulting Facility

Anyone starting out in precious metals and needs a vaulting facility, I currently use Bullion Vault, feel free to use my referral link here to check it out.

Property & Land: Tangible Assets for Long-Term Stability

Real estate, particularly in times of inflation, emerges as a reliable investment. However, strategic considerations, such as geographical location and potential income generation, become pivotal for success.

Cryptocurrency

Bitcoin and Ethereum: Pioneers in the Crypto Space

Cryptocurrencies, especially Bitcoin and Ethereum, offer decentralized alternatives to traditional currencies. Monero, a privacy coin, ensures private transactions on the blockchain, emphasizing the need for a cautious approach and can be a useful tool in your portfolio.

Risks and Considerations

During crypto bull markets, scams abound. Scrutinizing service legitimacy, owning your crypto keys, and staying ahead of evolving government legislation are crucial for a secure crypto journey.

Equities: Strategic Stock Investments

Certain equities, despite fiat currency dependencies, may thrive during economic resets.

Exploring mining stocks, opportunities in Emerging markets such as LATAM or China and commodities can be worthwhile in diversifying your portfolio.

Cash For Crisis Investing/Trading: Readying for Opportunities

Maintaining a cash reserve provides agility to seize market opportunities during downturns and you can take advantage of opportunities quickly in the market.

Keeps you ready so you can act accordingly, this allows you to see opportunities to purchase positions during drops.

Diversification As Risk Mitigation

Much like decentralization in the cryptocurrency realm, diversification shields your portfolio against failure.

A diversified approach, not only across asset types but also within each asset class, ensures resilience in times of uncertainty.

A Case Study in Crisis Investing: Insights from Charlie Monger

Charlie Monger’s success in investing during economic crises illustrates the potential hidden in turmoil.

By strategically positioning yourself to capitalize on asset price crashes or geopolitical shifts, you can unlock opportunities when demand is low.

Bulletproof Portfolio: Crafting Your Financial Fortress

Diversification, crisis-inspired investments, and strategic asset allocation culminate in a bulletproof portfolio. The percentages are just an indication but should be based on your risk level and the amount of wealth or savings you have.

*Bonus (Most Important): Your Mental/Spiritual Real Estate

Beyond the tangible aspects of wealth protection, the most critical investment lies in your mental and spiritual resilience. Detaching from outcomes, akin to playing a character in a 3D video game, empowers you to navigate challenges without succumbing to fear or the desire for control.

Take Charge of Your Financial Future

The journey to financial resilience during these times begin with knowledge and strategic action. If you desire deeper insights into creating an income online, inflation, reset investing, cryptocurrency, or optimizing your tax liabilities, I invite you to book a free strategy call here.

Let’s navigate these turbulent times together and emerge not just unscathed but stronger and more prosperous.

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