China has been reducing its Treasury holdings for some time now … and buying gold. A quick scan of the chart below from The Wall Street Journal paints a sobering picture.
So I ask, what happens when the rest of the world decides holding gold is much better than holding U.S. dollars?
For the most part, my family and friends consider me an upbeat, positive person. Nevertheless, I occasionally receive a note asking if I am a member of the “doom and gloom club.” My answer is: No! Frankly, I don’t like harping on about all of the things that could go wrong — but it’s part of “guard duty” to warn you of real threats.
How can we keep these threats in perspective? It took 25 years for the stock market to come back to its previous high after the crash of 1929. We all remember the Internet boom and bust years later: the Nasdaq closed at 5046.86 on March 11, 2000; on Oct. 9, 2002, it closed at 1,114.11, having lost 78% of its value. Then from 2007-2009, the stock market tumbled again. The S&P 500 peaked in October 2007 at 1565.15. It bottomed at 676.53 in March 2009.
For baby boomers, previous market booms and busts happened during their working careers, when they had time to recover — until now. Ten thousand baby boomers will retire every day for the next 17 years. Boom-and-bust cycles take place all the time, and retiring does not create a blanket of immunity from these cycles. Actually, it exposes one to greater risk. There is no guarantee the economy will snap back within a few years after the next bust.
Our team takes these threats much more seriously than I did the cockroaches in the Arizona desert. The potential for catastrophe is far too great for us not to.
Simon Black has said, “There are two ways to sleep well at night, be ignorant or be prepared.” Preparation, however, is only step one. The Marine Corps takes it one step further: You can be well prepared; however, if you are asleep without sufficient warning, much of your preparation may go for naught. Vigilance adds security.
As you have read, the Miller’s Money Forever team takes guarding its subscribers’ portfolios very seriously. There’s nothing more important to our team than providing readers with direction on how to get real returns while mitigating risk. And we’ve done so successfully, with real returns that have safely provided real income for our subscribers. You, too, can employ our team in guarding your nest egg. And you can do it today for half the price. Act now to learn more about Miller’s Money Forever and our Bulletproof Income portfolio.