Should You Invest During A Financial Crisis?
Most people preparing for the coming financial crisis do so in a number of ways meant to protect themselves.
A conservative portfolio right now consists largely of physical gold and silver, mining stocks and a limited number of mutual funds based on physical assets and commodities. Very few people think of how they can make money during a financial crisis, but it is possible.
When the stock market crashes, a lot of wealth disappears but even more of it simply changes hands. In the chaos of the moment, money can change hands rapidly, but it is those with a plan and clever investments who come out ahead.
It’s not always the people you expect it to be. Let’s take a closer look at what you can do to prepare to profit from the coming global financial crisis.
Ignore the Crowd
By now I hope you understand just how out of sync the “crowd” is from the actual health of the economy. More than any time in history, wealth has been distorted and people continue to delude themselves in ways that are only making the problem worse.
There is overwhelming pressure from those in your life and from inside your own head to follow the flock and do what everyone else is doing (including very intelligent, weathered investors), but right now, that is not your best course of action.
A very small number of investments are sound right now – it is all about finding those investments, diversifying your holdings and ensuring you are prepared for anything that happens during a crisis, because no matter how well prepared you are, you’ll never know for sure how it happens.
The End of an Asset Cycle…
…Generally means the start of a new one. In history, times like this have been catastrophic for the vast majority of people, but for some others, they have been opportunities to acquire unprecedented wealth.
Fiat currencies collapse – the historical data tells us this over and over again. But new ones tend to rise from the ashes of the old and when that happens, smart people with forethought make a LOT of money.
In this case, the global economy is too interconnected for any wealth to truly disappear. What will happen instead is the euro and the US dollar will collapse, instantly devaluing trillions of dollars in holdings in those currencies.
However, as the value of cash declines, the value of physical holdings like precious metals and commodities will increase sharply. This is where you can make your fortune.