Hi Do, Here are Todd’s latest fun picks to take your financial skills to the next level... A reader took me to task last week...
My warning for "epochal change" that began in 2021 with increasing emphasis in recent editions is too "doom and gloom."
My bad...
That's miscommunication. Let me clarify...
I'm actually extremely optimistic. I see great opportunity (along with great risk).
If my warnings came across too strong, that's because I desperately wanted to undermine your inertia for action. I wanted you to see that what's happening is not business as usual. Something fundamentally different is occurring that requires a different action plan - epochal change.
It's not doom and gloom, but it's absolutely NOT what we've known for the past 50 years. If you do as you've always done then you're setting yourself up for disappointment. We've entered a new epoch requiring new investment rules.
If you don't change your strategies in alignment, then your results will suffer. That's the imperative. Not doom and gloom, which is hopeless and unproductive.
Epochal change is about extraordinary risks and opportunities. You must learn how to manage your portfolio and reconstruct your wealth plan, which is the purpose of the educational resources I share with you in each edition of this newsletter (along with the product links I provide at the end). They all teach different aspects of this epochal change.
I'm actually incredibly optimistic. Renewable energy is finally the low cost provider with more technological change accelerating that curve at lite-speed. Energy independence through renewable mass adoption changes everything both politically and economically (epochal change). That is partially why the U.S. is intentionally undermining the petrodollar and U.S. dollar hegemony with recent policy against Russia. It is now in our national best interests - both economically and for security reasons - for the first time since World War II (as developed in the first two podcast resources shared below). I will share resources in the future about the biotech boom that is happening right now, not in the future. The human genome was recently fully mapped after many years of effort, and the revolution in biotech is mind-blowing. The impacts on future health care and human longevity can't be overstated. Just imagine what it means to double the productive life of humans (defined as the period of time between education ending and formal retirement). This is not science fiction. It's already well underway, and the economic and societal implications are hard to wrap your head around because it's so powerful. And the rise of digital finance slowly emerging out of the crypto space will revolutionize how we do business and conduct our lives. I'll provide more resources with my view on crypto in future editions. These are just three examples of profound developments that will change the world we know today in positive ways. My children have a lot to look forward to. I'm extraordinarily optimistic long-term (measured as a time window starting after the 10-20 year period of dislocation we are entering right now).
But first, we must manage your portfolio risk for the great dislocation immediately in front of us as we transition from the old world we know and understand where the U.S. was the dominant world power, the U.S. dollar was king, and the Fed pursued a policy of perpetual asset valuation growth with impunity because of the deflationary economic backdrop resulting from technology and offshoring production, and on and on and on.
That old epoch is rapidly transitioning to inflation forcing the Fed's policy hand in a direction not seen for 50 years, financial repression, stagflation, mean reversion of asset valuations, supply limitations, regime change in asset leadership, on-shoring of manufacturing capacity (which requires a lower dollar thus reversing U.S. dollar leadership), and so much more.
None of this is doom and gloom. It's just a dramatic change that requires different strategies for managing and growing your wealth.
Epochal change is about a period of extreme risk and opportunity.
Those that understand it can manage risk and position for prosperity.
Those that don't understand it will be taken by surprise and hurt financially because they're playing by an outdated rule book.
I hope today's message clarifies any prior miscommunication, and today's resources help you get on the right side of this change! This podcast interview with Louis Gave provides additional insights and updates to many of the ideas developed in the Luke Gromen podcast with Grant Williams first shared a couple newsletter updates back. The key point is that government sanctions against the Russian central bank and the Swiss freezing Russian assets sent a clear message that assets under foreign control were no longer safe. The subsequent response in world bond markets has been both predictable and historic. But it's only the beginning, which is why this is epochal change. Louis gives the narrow view and current update, while Luke provides the bigger picture and longer-term perspective. Make sure you understand both. Pippa Malmgren published this grabby headline October 29th, 2021 - long before Russia invaded Ukraine. Her premise is we are already engaged in multiple hot skirmishes in cold places. Major superpowers are conflicting with each other in outer space, under sea, on remote islands, and in cyberspace. While she focuses on military skirmishes in her written article linked above, she develops the economic and policy implications in this podcast interview. Again, this is an example of epochal change where free trade throughout a world at peace is changing rapidly. We are rapidly onshoring production for national security reasons, and that requires a lower dollar. It's not doom and gloom. There are risks and opportunities, which she does a much better job of explaining in the linked podcast interview than in her written article. This podcast interview with Mike Green follows on the Pippa Malmgren resource above to further develop the investment implications. Need I repeat it - this is epochal change. There are risks and opportunities requiring a new playbook. What worked for the past 50 years is suddenly reversing. It's not doom and gloom, but it is high risk with commensurate potential reward if you know how to manage your way through this change. My two resources below can help you navigate both the investment strategy and financial planning strategy issues.
Onward and upward!
Todd Tresidder
Two Solutions For Epochal Change: This investment software solution shows you how to sleep peacefully and secure your financial future in good times and bad. I use the same to manage my own money, and my clients are loving the results they're getting. My flagship Expectancy Wealth Planning master course shows you how to maximize the expected growth of your wealth in every market condition regardless of epochal change. It's timeless wisdom that works in all economic environments... including today's. |
