Writing this New Year article has been on our to-do list since January 1, 2016. Finally, it’s here! I know most of you probably haven’t noticed…it’s okay. Even if it’s for that one person who keeps holding us accountable by reminding us of this responsibility (you know who you are), it is well worth the time and effort to finally share it. The truth is we couldn’t have envisioned how busy the last couple of weeks would have been for us, given some new developments. I will share more on our new endeavors some time in the future.
Now, let’s shift gears and focus on today! This moment is important because even if I can’t spend time reviewing our 2015 predictions, I want to at least share my thoughts about 2016. Have you seen the news in the last 60 days? It’s all gloom and doom. Though I hate to be the bearer of more bad news, the truth is that the global economy’s foundation is being tested. From the Americas to Europe, Asia, and Africa, it’s safe to conclude that our leaders are confused! The more they’ve tried to rely on decades’ worth of professional knowledge, the more the solutions elude them. National economies are now at odds with each other and every country is doing what’s best for its own (and necessarily so). There won’t be an immediate solution to the fall in oil prices, stimulus packages won’t work, and I strongly see a scenario where the global powers will begin a race for negative interest. Just in case you haven’t heard about negative interest, I encourage you to look into it. The pervasive confusion around the world is even more apparent when you observe the 2016 U.S. election landscape, particularly the thought of Donald Trump having a real shot at becoming the leader of the free world.
So, what does this mean for you and your finances?
This global uncertainty about the future is a sign of the last days. Whether you believe this last sentence or not is irrelevant but I want to encourage you to reduce your cash holdings to the bare minimum needed for family and business operations (i.e. emergency funds), and invest excess funds in physical long-term assets. I can’t imagine what impact this global chaos will have but I suspect some dire implications on currencies, globally. Albert Einstein said, “In times of chaos lies moments of opportunity.” We should not be worried but rather get ready for the opportunities ahead.
China already declared 2016 as the year of the monkey! Monkeys are known to be witty, intelligent, and able to navigate complex situations in the animal kingdom. That tells you and I that we ought to be vigilant, witty and intelligent in order to navigate this global chaos in 2016. Doing nothing is not an option; we have to be proactive about these times.
I wish you all the very best in 2016. Happy investing!
Here is to being financially fit!
