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From Mark Ford, founder, Palm Beach Research Group: At PBRG’s Infinity Conference last month, there were a number of questions about how investors should prepare for the future, now with Donald Trump as president-elect and U.S. and world debt at historic highs, and threats of financial collapse and social unrest looming over us.
Here’s what I’m going to do: Very little.
I think it’s likely that the stock market and the real estate market will dip or dive in the next year or two because they are both overvalued. But I am not certain of this, and however likely I think it is, I wouldn’t begin to bet on when it might happen.
I also believe it is possible for the economy to move quickly into another major recession or even a complete collapse.
But I don’t believe I’d likely profit from a serious economic collapse. If there is a real collapse, it will likely be a global meltdown that will affect virtually every asset class and almost certainly all forms of stocks and bonds—regardless of sector.
And if this happens, just about everyone will get poorer: the rich, the poor, and the middle class.
While that worries me, it doesn’t really impact what I’m doing.
Why?
Well, first of all, because I learned long ago when I was living on $50 a week in Africa that I can be happy with much less.
But also because I have diversified my investments in such a way that I will likely survive a financial catastrophe in relative comfort. I’m quite confident that my asset allocation strategy will put me in much better shape than anyone who is betting the lion’s share of his money on what the future will bring and when it will bring it.
In the meantime, I’ll continue earning an income from my real estate holdings and from businesses I partially own. And if I want to earn more, I’ll do some consulting or give seminars.
As for the Trump years, I fully believe that significant opportunities will arise as a result of the president-elect’s new policies and initiatives.
But I don’t think for a minute that ordinary investors will benefit from these.
While they are speculating on infrastructure and security stocks, true insiders will be nosing in on multibillion-dollar government contracts. Trump may change some things about Washington, but he won’t change that.
What should you do?
I will simply say this: If you haven’t figured out how you allocate your money, you should do so now. And if you don’t have your assets diversified in a way that at least resembles what I’m doing, as I described in the most recent The Palm Beach Letter, you should consider making changes before the new year.
Editor’s Note: Regular Palm Beach readers know that Mark’s wealth-building strategy doesn’t depend on market conditions or who is in office. It’s a holistic blueprint of income-producing ideas he’s refined from 30 years of experience.
Over that time, Mark has produced multiple income streams from rental real estate, dividend-producing stocks, non-traditional assets, and off-Wall Street investments.
Ask Mark: On becoming richer every day…
Today, we conclude our special holiday feature, “Ask Mark.”
In these videos, PBRG founder Mark Ford answers questions sent in by our subscribers. It’s unvarnished and straight from the source.
In the final short video, Mark shares what motivates him to become richer every day…
In case you missed it…
In the LIVE demonstration below, Agora Financial’s Joe Schriefer shows this woman how to generate $127 in INSTANT INCOME from the markets in under three minutes…
Joe says anyone can do it… See how in the video below…
