The Depression is Just Getting Started
In a previous post, I suggested that we have serious economic challenges mounting their ugly heads in our near future. Over the last 12 months, markets have gone down 40%. Owners of mutual funds have seen their portfolios go down by that much or more.
Although I titled this post about the future, I do not profess to know the future. Humans are not omniscient, and therefore they cannot tell the future.
But even without knowing the future, you can still be prepared for it. if the weather forecast says 20% chance of rain, you probably be okay. But if you bring an umbrella, you’ll definitely be okay.
And so it is with money. Millions of people have trusted so-called experts to manage their money. Unfortunately, they find themselves in the unenviable position of owning mutual funds. Their so-called expert did not prepare them for the rainy days ahead.
Many would-be investors are freaking out right now because they were not told that they could lose most of their money. They were not told that markets go up and markets go down. They were not told that the market could go down 90%.
Contrary to popular opinion, ignorance is not bliss. Ignorance is going out without an umbrella, and not even having the weather forecast.
So, what’s the solution? One solution is to get educated. Those financial experts have no intention of educating you. Because that’s not their business. Their business is to sell mutual funds and other so-called investment vehicles and make money on the commissions. So, if you want to get educated, you have to look elsewhere.
A good starting point is Rich Dad, Poor Dad
Related posts:
- 2009: A New Depression
- Is 2009 the Start of the Next Depression?
- Financial Experts and Doubletalk
- Depression Solution Part 2: Derivatives and Financial Innovation
- Why the Markets are Going Down and Why they Could Go Down Further
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is one of my favorite financial books of all time. It's an allegory about a guy who has a terrible job, and how he overcomes challenges to achieve his dreams.
