It’s the End of the World As We Know It
Scott,
I am 43 with $240,000 in my SMSF, and I have liquidated my portfolio after reading up on the coming financial crisis. The US Federal Reserve will lift interest rates, which will cause a tsunami of defaults around a world that is addicted to cheap money. What are your thoughts?
Bill
Hi Bill,
I think you’re bonkers.
I also think you’ve been reading too many scary emails from too many financial gurus trying to sell too many get-rich-quick newsletters.
The world is far too complex for anyone to forecast anything with certainty. If these guys could accurately predict the future, they’d be rolling in it -- so why the hell would they be emailing you, mate?
Let’s look at someone who really is fabulously rich: Warren Buffett. He doesn’t waste his time trying to predict the economy, or interest rates, or anything else. He believes that our best days are ahead of us, and that you get rich by owning businesses that create prosperity. History tells us he’s right.
Another fabulously wealthy investor, Peter Lynch, said, “Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.”
Scott