from The Burning Platform:
This is an appropriate time to retell something that happened a few weeks ago. I met with a financial adviser to go over my affairs to align them with Australia and US law.
As is probably no surprise, I currently hold no stocks whatsoever. I am heavy cash, property, etc. Not that I am happy with those assets either, but in the end 100 acres of land does not suddenly become 50 acres of land. And $100 in cash tends to become $50 in cash over a medium time frame (barring bank collapse).
The conversation included these snippets:
Adviser: “You really need to diversify more. Stocks are the best long-term investment. Here, have a look at these charts showing long-term growth”.
Me: “F**k that. Stocks are fucked and are gonna collapse.”
Adviser: “No they are not. The world-economy is strong. The US is growing and their unemployment is down, and their economy is booming!”
Me: “F**k that. You have no idea. If the US economy is so strong, why are real wages down, why is the participation rate down, and why are the numbers of people on welfare benefits booming?”
Adviser: “Ummm, what is participation rate?”
Me: “You are joking, right? You need to educate yourself about what is happening in the world. Plus, you need to understand that Europe and China are hanging by threads, as is the US. What do you think will happen to US/Australian stocks if Italy, Spain, or France goes the way of Greece?”
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