These days, it feels like our state of global affairs is in complete and utter despair. Even the world's most stable nations have been tried and tested again and again... And they're caving under all the pressure.
Recent terrorist attacks across the pond have left Europe vulnerable in an already tense economic situation. Meanwhile, America is up to her eyes in corrupt crony-ism and blatant dysfunction on Wall Street while Main Street remains crippled by class warfare in the wake of a decaying financial system.
Political campaigns are in full swing and both parties are succeeding at little more than embarrassing themselves (and our political reputation), fumbling over words, misremembering their pasts, and struggling desperately to articulate any clear understanding of financial issues, foreign policy, and all the complexities that have left our once indestructible country on the brink of collapse.
And there's no knight in shining armor on the sidelines waiting for his cue to swoop in and save the day. Even the Federal Reserve is all but giving up the ghost.
There's no way to sugarcoat it anymore. We're in real trouble. Whether we're looking at the slow death of the dollar, stagnant GDP growth rates around the world, relentless underemployment rates, shrinking incomes, or the Fed's failed monetary policies, it's all pretty darn bleak.
People have lost confidence in the dollar as the government has proven its irresponsibility by not paying back its debt. And every day those debts aren't paid is another day of slow death.
Middle-class America is vanishing into thin air as wages have barely passed where they were two decades ago and Americans' savings are plunging to all-time lows.
Roughly a third of the country relies on handouts (perhaps by design to placate millions of disgruntled constituents): nearly 50 million people are on food stamps, 10 million are on disability, and millions more are taking drugs prescribed for “depression.”
Meanwhile, one-third of workers have nothing stashed away for retirement.
All in all, it ain't a pretty sight.
Alas, a corrupt house of cards can't stand forever...
A system built on cheap lies and piles of worthless paper "assets" under the control of just a few fiercely egotistical oligarchs can only function for so long.
Peter Schiff recently sent out an SOS to the global economy, warning: “The Whole Economy Has Imploded… Collapse Is Coming”.
The time is nigh. Year's end will mark a climatic moment in this ongoing war for your wealth. An economic epidemic is upon us...
The bear market plague has already spread far and wide. Even the strongest among us harbor little to no immunity... economies across the board are in danger.
Hundreds of billions of dollars are currently fleeing emerging economies. Every BRIC country (Brazil, Russia, India, and China) is struggling, and the group’s growing footprint means its problems won't only have a casual ripple effect on the globe at large; it'll be a tidal wave effect in due time...
In China alone the recent economic gloom triggered a rout in stock markets around the world.
Indeed, this is bad news for Western nations like the U.S. and those in Europe that have been increasingly targeting the BRICs for future growth since 2001 when Goldman Sachs chief economist Jim O’Neill coined the acronym BRIC, calling them “the economic engines of tomorrow.”
Although India is the only one really capable of countering the Chinese slowdown, the rate hike in the U.S. “is the biggest risk on the horizon and could hammer India” according to Quartz journalist Thomas Hult.
India has invited a grand influx of U.S. cash in the past few years — courtesy of the greater yields on offer — but higher rates will have the reverse effect. Consequently, India too would fall prey to the bear market epidemic. We're already seeing this happen, as Indian stocks were hammered by the market pullback in late 2018.
We're running out of saviors, heroes, and backup plans. The Fed's failed fairy tale is playing out most tragically as we speak. Our knight in shining armor is officially MIA.
Reality is finally settling in. Natural laws of supply and demand are back in action. Stocks are sliding, retail's collapsing under our feet, and oil's still getting crushed on oversupply.
Worldwide, about $8 trillion in bonds have negative interest rates, debasing currencies and destroying wealth.
The market at large has proved its innate vulnerability despite the Fed's best efforts to distort the real macroeconomic picture.
Financial consultants warned we were in the third-biggest stock bubble in history...
As future earnings growth estimates are expected to shrink, it's evident that our fears have come to fruition. Investors would be wise to brace for the bear market impact expected to continue over the next several months.
And this bear market isn't showing up to the party alone — it's directly tied to an "earnings recession", defined by Investopedia as:
A significant decline in activity across the economy, lasting longer than a few months. It is visible in industrial production, employment, real income and wholesale-retail trade. The technical indicator of a recession is two consecutive quarters of negative economic growth as measured by a country's gross domestic product (GDP); although the National Bureau of Economic Research (NBER) does not necessarily need to see this occur to call a recession.
The last time we witnessed one of these calamities was in 2009. And although analysts are expecting a rebound in earnings growth before the end 2016, the short-term is looking particularly ominous.
We've seen a series of revenue and sales declines now, and earnings estimates are being slashed across the board.
"There are some wicked winds swirling around from a macro perspective and you can't afford to be complacent," Alan Gayle, head of asset allocation at Atlanta-based RidgeWorth Investments, told Reuters.
Billionaire business investor Carl Icahn is outright blaming the blunders of major corporations and U.S. government for the “dangerous times ahead” for the U.S. and its neighbors across the pond.
Chastising our complicated and inefficient tax code, frowning upon us for not repatriating cash generated by U.S. companies abroad, and shunning reckless firms buying other businesses to increase stocks instead of reinvesting in capital, Icahn is far from optimistic.
Alas, you reap what you sow...
"I feel so strongly about the disfunction in Washington and the boardrooms of corporate America. We have a short term thinking government.
"Companies today, instead of taking money they can borrow and invest in capital, new machinery, new equipment, in their workers, what they do with the money is almost perverse.
"They go in and buy another company to show the analysts on Wall Street their earnings are going up, so their stock will go up; it's financial engineering at its height."
Moreover, he believes the Fed's decisions to impose low interest rates is “another scary issue.”
Peter Schiff had this to say on the Fed's failed quantitative easing experiments:
"I believe that the Fed is going to have to do another round of quantitative easing, that they’re not going to raise rates and that’s going to be a shocker. It’s going to send shock waves throughout the currency markets and the bond markets because everybody expects the Fed to raise rates and when they don’t do it because the economy is too fragile because it’s just a bubble, not a legitimate recovery then people are now going to have to second guess their idea that what the Fed worked instead of calling Ben Bernanke a hero a lot more people are going to say, wait a minute he wasn’t a hero what he did wasn’t heroic. He took the coward’s way out because all he did was exacerbate the problems to postpone the day of reckoning...
"The other thing is when you’ve been on 0% for 6 years you develop an addiction to that. We have built an entire economy around free money. You can’t take that away even if the interest rates are still low, even if they went to just 2% to 3%. Yes that’s still low. But not low enough for an economy addicted to 0%. If you’re a heroin addict and your body is used to a certain amount of heroin then your pusher says “I can only give you half of what I normally give you, but you still have some heroin.” That’s not gonna cut it. You’re already gonna start going through withdrawal.
"And although the Fed admits it probably should have increased interest rates back in September, rising rates will consequently further decrease the amount of money consumers can spend."
Americans still have to pay the same bills, but now those bills are becoming more expensive, hence households are left with less disposable income. This means that people will spend less disposable income, which will detrimentally affect businesses across the nation.
Likewise, the stock market will react congruently.
Additionally, The Economist reported that the world's once vast stockpile of reserves is rapidly falling, as dwindling global liquidity fears escalate exponentially: "With anxiety about the world economy rising, many hope the dam will hold for a little longer."
The way I see it, some semblance of systemic collapse is imminent. Conventional paper assets can't compete with real economic energy. Only a system built upon the true fundamentals of economics can withstand the tests of time.
When this charade is finally over — and the frivolous system does come crashing down — those with the foresight to invest in real wealth will find that the tables have turned... and precious metals bulls, acting at the right time, will be back on top.
That's why another esteemed international investor is urging investors to keep it simple in the wake of the pending global market crisis. Invest in what you know.
Jim Rogers told Malaysia's The Star Online:
"There will be a lot of turmoil in the financial markets next year, eventually leading to some sort of crisis, perhaps even a full-blown crisis.
Some emerging-market currencies are already having problems this year, and this is spreading to bigger things since this is the first time in history that all the major central banks are printing huge amounts of money."
When you look at the runaway debt trains, recessions (or tepid recoveries at best) in some of the world's "strongest" economies, and global turmoil, it's crucial to invest in what you know (like farmland, according to Rogers) and what is tried and true — like precious metals.
Rogers is "generally short global equities and owns real assets and producing agricultural land", but also said, “if gold goes under $1,000, I hope I'm smart enough to buy a lot more gold."
Gold has steadily rebounded and is consistently staying above $1,300 per ounce. Traders have been dumping gold on and off, but it keeps bouncing back as reality sets in. This is creating quite attractive buying opportunities.
However, these opportunities aren't likely to last long as geopolitical concerns worsen. If you're in tune with current events, you know that conflicts around the globe are destabilizing economies and raising worries of World War III.
Investors are beginning to turn towards the golden haven...
Now, more than ever, it's crucial to understand how to protect your finances from economic unrest. Investing in silver and gold just so happens to play a big role in doing so.
So stop waiting around for a hero to save us from this chaos.
Instead, cast your fears aside, pull up your bootstraps, and follow some salient advice from some of today's most prominent names in the financial realm.
1.) Do your homework. As Jim Rogers so simply puts it:
"I learned early in my career that if you read the annual reports, you’ve done more than 90% of the people on Wall Street. If you read the notes to the annual report, you’ve done more than 95% of the people on Wall Street, and if you actually sit down and do a spread sheet, you’ve done more than 98% of the people on Wall Street."
Gloom Boom & Doom publisher Marc Faber chimes in, asserting:
"To make a really good investment (which will in time appreciate by 100 times or more) is like finding a needle in a haystack. Most 'hot tips' and 'must-buy' or 'great opportunities' turn out to be disasters... Thus, only make investment decisions you have carefully analyzed and thought about in terms of risk and potential reward."
2.) Pay attention to the world and how it's changing. Make changes accordingly. Again, Marc Faber shares a nugget of wisdom regarding this process:
“Today's leaders may not be tomorrow's leaders. Don't forget that Xerox, Polaroid, Memorex, Digital Equipment, Burroughs, and Control Data were the leaders in 1973... Where are they today? Either out of business— or their stocks are far lower than they were in 1973!"
So keep your eye on emerging trends, especially technology. Whether your like it or not, you have to invest in the future, not the past.
3.) Stop waiting for a solution to all this monetary madness. Take you financial future into your own hands. Although not so easy to digest, we have to let go of the illusion of the Fed's failed fairy tale. The Fed has no new tricks up its sleeve. Investors are on their own.
So invest in what makes sense. Invest in stable companies that provide real services; companies that are more immune to economic collapse. Look for companies that offer dividends. Compound your wealth with these dividends. Albert Einstein was quoted as saying that, “Compound interest is the eighth wonder of the world. He who understands it, earns it...He who doesn't, pays it.” It's true. And it could make all the difference in your financial future...
Also, allocate some room in your portfolio for safe havens. Prepare for the worst, just keep your cool and be pragmatic about it.
4.) On that note, always remember Warren Buffett's mantra behind his billionaire mindset, “Be fearful when others are greedy and greedy when others are fearful.” Don't fall prey to these doomsday scenarios; rise above the hyperbole. Keep your head high and focus on growing your wealth instead of blindly turning it over to a wildly imbalanced market — it's time to think outside the box that this financial system has tried to trap you in.
5.) Remain realistic. As I said earlier, safe havens are crucial. But don't be dumb about it. Remain realistic. Jim Rogers told MarketWatch:
"Part of the problem is that many people consider gold to be holy. They are mystical about it. Some mystics are surprised that gold goes down at allocation.
"When the next problem comes, people will lose confidence in the government, central banks, and paper money. That's when gold goes up the most."
Moral of the story: don't be a mystic. Be a realist. Don't be lured in by a narrative that sounds too good to be true. Diversify your portfolio and never put all your eggs in one basket.
Economic collapse isn't coming. It's already here. Indeed, it is rearing its ugly head as we speak. We're currently experiencing more of a slow, painful death vs. any sort of an epic momentary happening.
Our advice to you? Get started investing and saving today. As one of our favorite gloom and doomers, Marc Faber, so eloquently puts it: "Today's society is obsessed with money. But the best investments for you may be in your own education, in the quality of the time you spend with the ones you love, on your own job, and on books, which will open new ideas to you and let you see things from many different perspectives."
That's where Outsider Club comes in for you. We are here to help open doors for you by sharing these new ideas and perspectives with you in order for you to make the most educated decision that is truly in your best interest.
We're here to help you reach your financial goals that are unique to you and your situation/future goals. Contrary to popular opinion, you can boost your portfolio in lieu of bleak economic outlooks.
You've just got to train yourself to think outside the box and stay ahead of the herd. Don't fall prey to the greedy hands of the Establishment. Break free and profit from the outside.
We're so happy you've decided to join us by making a commitment to take your finances into your own hands. We will help you manage your own investments instead of blindly giving in to a system that skims off the top until it's time for you to retire, leaving you wondering what you've been working for over the past 40 years...