Letter from Bob Schumann:
How will the war in Ukraine impact you and your investment strategy?
If you’ve been attending our webinars you know that three economic conditions have repeated themselves every 70-100 years for the past 500 years are:
1) record US and global wealth gap,
2) record US and global debt levels, and
3) the rise of a new economic power that threatens the existing global order.
You know the last time these conditions occurred was from 1925 – 1945 when we experienced the great market crash of 1929, the Great Depression, the collapse of the US Banking system (1930-1933) and World War II.
You’ve heard me say these generational cycles occur because good times create weak people. Weak people create bad times. Bad times create tough people. If the current period started with the financial crisis of 2008 and lasts about 20 years, we have about 8 years of tough times to go. Conclusion: TOUGH TIMES NEVER LAST. TOUGH PEOPLE DO.
The global stock, bond and commodity markets are forward looking economic indicators. In January they began processing the increased risk of the war in Ukraine which became is becoming a reality as I write. To sell stocks, buy gold or make other anticipatory changes is like shooting where the rabbit was.
We cannot predict the unexpected. But we can plan for it. If you’re a client of Plan & Act, that’s what you’ve done. If you’ve been attending the webinars, you know that your financial plan and investment strategy have been designed to take advantage of systemic, macroeconomic risks that cannot be eliminated from life. In fact, they are the only risks that reward!