Prudent Investing for Perilous Times
NEW YORK (Bullion Bulls Canada) -- Ironically, there are few -- if any -- virtues in our society that are as under-appreciated/under-respected as humility. We are living in a me-first world that worships the "Alpha wolf," who aggressively takes what he wants. Humility is mistakenly interpreted as weakness or timidity. Being humble in no way implies being meek. One can be humble while still refusing to be anyone's doormat. In fact, humility is simply the opposite of arrogance. The arrogant individual is prone to being impulsive, over-confident and careless. The humble person leans toward prudence and caution. Much of what is taking place in the global economy is confusing (and frightening) to the ordinary person, so people need to be completely focused on being prudent and cautious when handling their financial affairs.
We have already seen once in the Crash of 2008 what happens to the arrogant; and as many commentators (including myself) are warning people, 2008 was nothing but a warm-up for the economic chaos ahead.
It is "humble" investment strategies which investors should embrace today, as opposed to the world of high-frequency trading, exotic financial products, and endless acts of paper-fraud -- epitomized by the ultra-arrogant Wall Street bankers.
Understand that with the most rigged, corrupt markets in history, with unprecedented volatility, and with entire governments literally declaring bankruptcy, we must be defensive in our investing.
When we are in a defensive mode as investors, the primary objective is the preservation of capital. I completely understand that because of the gross economic mismanagement of our corrupt, incompetent governments that many people feel they need to focus first on maximizing return, but that is the path to financial suicide. It was the people who were looking to "maximize return" who were especially devastated in 2008, and it those people who are certain to be wiped-out again in the years ahead.