Financial: "New Normal"

[Teach]

I call it an “insurance policy.” Just in case... “Black Swan” event? No more than 5% of my total assets. It’s just that sometimes less-than-qualified people run our institutions. The operative word is "greed." You can add "stupidity." It's like a Bernie Madoff "Ponzi scheme." That leads to pain.

Let me state, at this point, I have no axe to grind. Yet the Fed has been as my father used to say, “A day late and a dollar short." The genie is out of the bottle. The horse has left the barn. And, my friends, it will take extraordinary, lest I say painful measures, to get "Ol' Betsy" back into the barn.

As a disclaimer, I own gold stocks, a major and a junior. Frankly, over the last several months I’ve been takin' “a beating.” But, again, these gold stocks are my “insurance policy.” My diversification. Something these already failed and now failing banks should have done. You can't be putting "all your eggs into one basket."

Personally (One college course in economics doesn't make make me some kind of financial guru), and no, I can’t see into the future. No clairvoyance. Yet I believe we are headed into a severe inflationary cycle. If you think prices are high now… It's like one of those torrential dam-busters. There’s no stopping it until much damage has already been done.

As I conclude, it’s up to you (I hated it when people touted me at the track), but I would consider a diversification into precious metals, There already exists in financial markets, in light of recent developments, a safe-haven mentality. If banks keep failing (there are vulnerable ones out there), this could turn ugly. As someone who has lived eight decades, I've learned the hard way that one should never be lulled into a false sense of security.

Finally, I gain no pleasure in discussing this topic. Most of us are "in the same boat." Personally, I believe a lot of what we hear is propaganda. During the beginning of "The Great Depression" the oracles ket saying it's a "temporary correction." Recently, we heard the expression: “transient inflation.” My friends, this ain't "transient." It's getting to be like
"shoveling against the tide." "One step forward, two steps backward." Yes, times are a-changing. No head-in-the-sand mentality. The worm has turned. As Simon and Garfunkel crooned, there are going to be some who'll be "slip-sliding away."

Recently, we talked about Covid-19 pandemic as creating a societal "New Normal." Today, we're on the precipice of calling our ever-increasing inflationary cycle, i.e., bank failures, etc, as the financial "New Normal."

[lamboguy]

what great advice!