When you look at how much has changed over the last four years, it’s important to consider how much will change in the next four. Today, you have a generational opportunity with Treasurys and other fixed income. You can seek out value and growth in stocks by being focused on getting paid and being patient.
When you look at the difference between safety and speculation you quickly realize investors lose money far too easily with carelessness and greed. You know the disastrous math from the arithmetic of losses.
You also know the difference between how one state manages its finances vs the other. It’s why I expect future ratings for dozens or more municipal bonds to be downgraded. I’m talking specifically about the blue states that just spend, spend, spend, hoping investors will cover the bills—treating taxpayers like piggybanks. Remember, it was the investor class that government wiped out during the Obama-led bailout of GM. Do you want to tie yourself to a sinking ship?
Action Line: Investing is always a forward-looking endeavor. Don’t lose sight of getting paid to invest. This is absolutely about safety and your survival. When you’re ready to talk, email me at ejsmith@yoursurvivalguy.com. But only if you’re serious.
