As the country reopens, we see a lot of optimism, a surge in the stock market, and companies that sustained the gap areseeing business come back. And I’m all for optimism and consumer confidence.
However – not to take away from the optimism – there are still fundamental infrastructure problems to face when we realize this surge was built by the Federal stimulus pumping trillions of dollars into the economy.
That’s essentially what I call Helicopter or Fake Money. Digital printing of money with no gold standard cannot have a good long-term effect. You can put a band-aid on anything and make it look good, and that’s what we’re doing right now.
The Fed’s keeping the economy going to avoid massive unemployment and unrest in the streets. We have to do it to some extent, but they’re still paying to be paid down the road.
That’s what I want to warn people about. Now is the time to make hay while the sun shines.
I don’t want to get political, but if the November election swings back to the liberal side, all bets are off. I’m not saying everything President Trump does is great, but if he wins, I think we’ve got a window of time where we can still build up a hedge against future disruption.
Either way, with either party, it’s not going to be easy. You’ve got a relatively short time to get your house in order if you haven’t already – get your lifestyle margins down, pay off bad debt, get your business in a better place.
What lessons have you learned from COVID? Where are your investments, and how are you orchestrating your future?
We had a long bull run market – over 10 years – and then this reversal, caused not by economics, but a virus. And we’ve added 5 or 6 trillion dollars to the National Debt in just 2-3 months. That massive debt has to be paid back. Where is that going to happen?
The stock market is strong again because the Federal Reserve came in and pumped trillions of dollars into the economy, staving off investor unrest. A lot of people are out of work who like to place bets and gamble. So now they’re on the Robin Hood app playing day traders, trickling the market prices up in a very inorganic way.
The stimulus has kept businesses afloat and made consumers think they have more money than they do. When the Fed has to pull back, there’s going to be a new asset bubble, and bigger issues coming down the road.
It’s easy to feel good about the comeback, but if you’re not positioning yourself for 2-10 years out, you’re missing the boat. To grab those opportunities, protect your family and legacy, and have a chance through the turbulence to come, you need to be with a group that knows how to look at the long game.
Where’s your tribe?
Figure out who will be there to give you the information you need when you need it.
To your freedom!
P.S. – I’m looking for a handful of doctors who want to put this into practice and work with me to replace active income from their practice with passive income within 2-3 years, tops. If you…
- Are concerned about your over-dependence on earned income from your practice
- You desire to invest in capital assets (NOT Wall Street)
- Have at least $1.5M in available capital (in some cases this can include imminent practice sale or under-utilized equity)
- Are a motivated seeker with a bias for action…
Then schedule a 10-minute call with my assistant Alex by going to: www.FreedomFounders.com/Alex – he will help you assess whether or not you are in a position to achieve your goals in the 2-3 year timeline. If it looks like there is a mutual fit, you’ll have the opportunity to schedule a 30 minute call with me directly. I’ll dig deeper with you and suggest next steps.