When I wrote my book Juggling Dynamite in 2007 and launched the blog thereafter, it was to warn and alert readers to the untenable personal risk they were facing in following conventional financial and investment planning, theories and managers.
While the truth of my message was made evident in 2008-09, just as it was in 2001-03, concerted prestidigitation over the past 5 years has bailed out and reinvigorated the self-serving financial sales force, while managing to paper over truth, induce complacency and seduce savings into harm’s way once more.
As a result, today we are still living through the secular bear period born from record financial leverage and asset valuations that have driven capital risks way up and return prospects way down,just as an aging population can afford losses less than ever before.
After more than two decades of daily effort to reveal truth and steward life savings on a sustainable path, I must admit that I have come to a sad conclusion: there is a common darkness in human nature and money. When it comes to financial hardship, most people play a leading role in their own suffering through not wanting to see facts and in believing those who tell them they can save less, gain and spend more by buying magical products and services. The bulk of the financial industry preys on the propensity of gullible people to believe/hope for an easy way out. No doubt this is the same reason that a multi-billion dollar industry of diet products enjoys a steady stream of buyers hoping to look fit without having to maintain the daily personal discipline in support of their health. But I digress.
For those who do want to help themselves and others they care about, facts must be faced, the sooner the better. To that purpose, it may be helpful to read and share this article: 3-Reasons To Question Your Advisor’s Every Move. It’s a good refresher course on some of the material in my book.
Investment cycles come and go, but certain truths remain the same. The most useful time to provoke awareness and take meaningful risk mitigation is before the third -50%+ market downturn since 2000 hits. And it’s now overdue. Understand why and spread the word.