When The Levee Breaks
One thing that has been on my mind an awful lot lately is…”what comes next?”
I’ve written extensively about my thesis for this next cycle over the next two or so years - it’s dangerously bullish. But, what about the cycle after that? Will it look similar?
How long can the country endure this rinse-and-repeat pattern of extreme money printing → assets go flying → central banks pump the breaks → asset prices come down?
Does it all collapse? Do the charts just keep going up and to the right?
Seems like in both scenarios most people end up poor. Either you have nothing and the system is collapsed OR everything keeps going up and you still have nothing because everything has shot up in price.
At a certain point the piper gets paid…right?
This level of money printing and debt is unprecedented in America. Plus, we’re entering into a complete demographic change where the largest generation (baby boomers) will not be consuming as much and will be dying off…
AI + robotics…
This is all new.
This isn’t meant to be a doom and gloom post, just a sobering reality. It’s why I’ve been pounding the table on this upcoming cycle. I believe it’s going to be a massive wealth generator to those who are properly invested.
I’m just not sure what the cycle after that looks like. In 5-7 years, the world will look completely different.
That’s why security is just as important as taking risk.
I’ve written about why calculated risk is necessary to amass wealth. But security is something that is just as important.
Knowing when to hold them, knowing when to fold them.
Everyone’s drunk on money in a bull cycle but who can sober up and leave the party (lock in profits) before shit hits the fan? That’s who retains the wealth he’s built.
Taking on risk that pays off doesn’t really matter if you can’t secure it and eventually lose it all.
Conversely, if you only focus on security and not taking risks, then you’re not going to make it very far.
So, in order to create long-lasting wealth, we need be fully straddled in both risk and security.
I mean isn’t that the point of it all…creating long-lasting wealth?
Why do we care so much about stocks and markets and crypto? Why do we consume ourselves with reading, watching, looking at charts?
It’s not money that makes us happy. Money is just the means to the end goal.
It’s because we are trying to achieve the future vision we see for ourselves and our families. Whatever lifestyle that may be - that’s why we’re here.
We all have that dream of where we want to be in X number of years. It’s a goal. It’s something we wake up everyday and try to slowly manifest.
This past week, I came across a fantastic strategy for balancing risk and security. It’s something that resonated with me and I think it’s great advice particularly for young people.
I’m going to explore this topic in this week’s premium portion. I hope you join me.