Seeking Security

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stevelivingston
61
11 days ago2 min read

We live in a strange unstable world right now. It's like we are still in the throes of the hangover brought on by the excesses of the run up to the 2008 bank bailouts.

Despite all of the turmoil of the 2008 crash, we've continued to see banks and the wider economy propped up by quantitative easing (aka money printing). This has fuelled asset prices with.... yet more debt. As the quantitative easing money taps turn off, we seem to be running out of steam. Yet we're like addicts, in need of our next fix.

There's just nowhere out there to look for financial good news. Property prices - over inflated. Stock markets - over inflated. Bond markets - over inflated. The list goes on.

We're fast approaching a cliff edge as governments too seem to be in a state of turmoil. Brexit, Trump, Venezuela, French riots... There is deep unrest.

So where do we look for security right now?

I believe that our safest place to seek security right now is in our own resourcefulness. To keep on creating value for others in a job or preferably running your own business and in so doing to generate cashflow. Now is not the time to feel safe relying on stock portfolios or other investments. It could be a challenging decade for financial (passive) staples of the past. We are going to have to keep on working and generating incomes from our efforts.

Personally, I wouldn't sit back and rely on investments outside my control like earning interest from a significant amount of cash sat in the bank. As appealing as this prospect might sound, it's just too risky and uncertain in these times. These are liquid assets at risk of being swallowed up in the turmoil that could ensue. Better keep your cash working for you in a business(es) that you own and control.

This uncertainty will hopefully all come to pass soon but I can't help but feel that there might be a painful shake-out to come... Be prepared.

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