Peabody award-winning author Sebastian Junger joins our podcast this week. Junger is well-known for his NYT-bestselling books The Perfect Storm and War, the latter of which was written after a 15-month tour of duty in the most dangerous outpost in Afghanistan's Korengal Valley.
Based on his observations while in Afghanistan, Junger noted how much troops in combat valued the social solidarity of their units. In fact, he noted that the loss of this cohesive community, with its sense of purpose and shared responsibility, created prodigious psychological strife when these soldiers returned and tried to re-integrate into civilian life. This dynamic is not just limited to the military; any collection of humans working in tight-knit groups under stress, united in purpose, evidences similar behavior (Peace Corps volunteers, trauma care physicians, etc).
In his latest book Tribe: On Homecoming and Belonging, Junger explores our evolutionary wiring for community, and paradoxically, how our modern aspirations for "success" and "wealth" attempt to distance ourselves from it -- making us unhapper and emotionally unhealthier in the pursuit.
- Nicola Sturgeon to lobby EU members to support Scotland's remain bid
- Marc Faber: ‘Europe is becoming economically irrelevant’
- Some Early Signs of Brexit Upheaval
- To mitigate poverty, Y Combinator set to launch minimum income plan
- A-10s make rare highway landing near Russian border
- Elon Musk Is Squaring Off Against China for the Future of Tesla
- Your Coffeemaker Is Watching You
- 23 dead in West Virginia floods; search and rescue continues
Little did I realize when creating the short video below how prescient it would quickly become in the wake of last night's Brexit vote...
It's message is simple: there's a preponderance of data that shows the world's major asset markets are dangerously overvalued. And when these asset bubbles start to burst, the 'save haven' markets that investment capital will try to flee to are ridiculously small. Investors who do not start moving their capital in advance of crisis will be forced to pay much higher prices for safety -- or may find they can't get into these markets at any price.
If you have not yet read Part 1: Fortunes Will Be Made & Lost When Capital Flees To Safety available free to all readers, please click here to read it first.
So, given the conclusions in Part 1 -- as well as the larger risks to the economy and financial markets that we analyze daily here at Peak Prosperity -- how am I positioning my own personal investments?
I get asked this question often. Often enough that I'm deciding to open the kimono here and let it drop to the ground. Everyone interested to look will get the full frontal.
Before I do though, let me make a few things absolutely clear. This is NOT personal financial advice. The investment choices I've made are based on my own unique situation, financial goals and risk tolerance. And I may change these choices at any moment given new market developments. What's appropriate for me may not be for you, so DO NOT blindly duplicate what I'm doing.
As always, we recommend working with a professional financial adviser to build an investment plan customized to your own needs and objectives. (If you do not have a financial adviser or do not feel comfortable with your current adviser's expertise in the market risks we discuss here at PeakProsperity.com, consider scheduling a free consultation with our endorsed adviser)
Suffice it to say, any investment ideas sparked by this report should be reviewed with your financial adviser before taking any action. Am I being excessively repetitive here in order to drive this point home? Good...
OK, with that out of the way, let's get started. I'll walk through the asset classes I own and my rationale for holding each.
The strategy behind my portfolio allocation is of my own devise, though it has been influenced in no small part by the good folks at New Harbor Financial, Peak Prosperity's aforementioned endorsed financial adviser.
At a high level, it has been constructed to address my strongly-held conclusions that:
- Prices of most asset classes are dangerously overvalued
- The risk of another economic contraction on par with (or greater than) the Great Recession within the next 2-4 years is uncomfortably high
- The most likely path is we will experience a short period of coming deflation, followed soon after by one of high inflation as central banks starting printing currency without restraint (the Ka-POOM theory)
- Capital will increasingly want to flow from paper assets (tertiary wealth) into tangible ones (primary and secondary wealth)
- This is a time to prioritize protecting capital (defense) over speculating on how to grow it (offense)
- Diversification is wise: just be emotionally prepared that some of your bets, by definition, will not pay off
- In today's world of financial repression, no asset class is truly "safe". As such, asset performance is all relative.
This is not a swing-for-the-fences portfolio. It's much more of a prepare-for-the-storm approach...
Daily Digest 6/24 - Good News Friday: Technique For Super-Fertile Soil, Can Ocean Preserves Save Threatened Species?
- World Markets Upended by Brexit as Stocks, Pound Drop; Yen Soars
- "It’s Scary, And I’ve Never Seen Anything Like It" - Where Markets Are The Morning After
- Brexit: What Happens Now?
- Justice Department Reaches Deal With Mississippi County on Prison Reform
- How a Low-Income Household College Student Graduated Without Massive Debt
- Testing Drugs on Mini-Yous, Grown in a Dish
- Solar Impulse 2 completes world’s first solar-powered Atlantic flight
- Three amigos summit seen as rare chance for big moves on climate change
- Can Ocean Preserves Save Threatened Species?
- This 700-Year-Old Farming Technique Can Make Super Fertile Soil
The political and financial landscapes have been altered by last night upset "Leave" vote in Britain and now we have to try and make sense of the new terrain.
This is huge. Not that a Brexit 'Leave' vote has anything at all to with, say, Caterpillar’s earnings over the next few quarters. It has nothing at all to do with anything fundamental, but these “”markets”” have been anything but fundamental for years.
They've become gigantic, globally interconnected, leveraged speculating casinos. Nothing but a massive set of bubbles in search of a pin.
It looks like they may have just found one...
- "I Don't Need A War In The Black Sea" - Another NATO Member Folds As Bulgaria Refuses To Join Naval Task Force
- Pound and FTSE 100 rally as City expects remain vote
- TARP: A Love Story
- The Last-Minute Race for Gold
- How Obama's Gun-Control Push Inverted the Politics of the No-Fly List
- How Prison Labor is the New American Slavery and Most of Us Unknowingly Support it
- The Oil Glut Is Over, Says World’s Most Powerful Oil Man
- Florida gives FPL 10 years to clean up cooling canals
- El-Erian: Cash is a ‘valuable thing’ to be holding right now
- China's onshore defaults could spill over to offshore bonds-S&P
- BOJ April minutes show risks to economy, price growth persist
- Global oil investment gap widens by $1 trillion: Wood Mackenzie
- Soros Warns Brexit May Cause Pound Plunge Worse Than Black Wednesday
- Credit card limits hit record high in Australia, leaving $51.7 billion debt
- George Osborne's shame as Britain's debt tops £1.6TRILLION amid borrowing spiral
- Venezuela 2016 Default Likely, PDVSA May Go First, Moody’s Says
- Oi Files for Brazil Record $19 Billion Bankruptcy Protection
- Soros, Gross, Druckenmiller, Singer, Icahn: Big-name investors turning bearish
- Negative interest rates are a 'seeping poison' for the world's most important financial institutions
- Temer Gives Brazil States Billions of Relief on Debt Payment
- Pound pressured as Brexit poll shows 'remain' lead shrinking
Earlier this month, Shareable posted a short article about the Little Free Pantry in Fayetteville, Arkansas. Created by Jessica McClard, the Pantry is an easy way for people to share surplus food and household goods, and access items they may need.
At a recent week-long D-Cent hackathon and conference at Medialab-Prado in Madrid, a group of occupiers from the Tunisian revolution of 2010, the Spanish 15M movement, the New Zealand Occupy movement of 2011, the 2014 Sunflower Movement in Taiwan, and the French horizontal protest movement Nuit Debout, met for an informal discussion.
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Since the first browser was created by Sir Tim Berners-Lee over 25 years ago, the World Wide Web has grown to become a massive ecosystem of information that has democratized access to knowledge and culture on the Internet. But today, the Web is under threat.
- Senate rejects series of gun measures
- The Great British Trade-Off
- Home Is Where The Fraud Is
- Why Young Americans Are Giving Up on Capitalism
- The Gold to Silver Ratio is Bullish for Both Gold and Silver
- 10 years after housing peaked, US is more of a renter nation
- Peak Oil Consumption Dead Ahead But Price is Anybody's Guess
- How The Brexit Vote Will Impact Oil Prices
In a recent article for OpenSource.com, JT Pennington shares his favorite open source tools for photography enthusiasts. He points out that, while most people “scoff at the idea of a professional workflow on anything other than Windows or Mac,” that there are plenty of open source software options out there.
The argument that publicly-funded research should be made available to the public recently received a shot on the arm when the Competitiveness Council of the European Union reinforced its commitment to making all scientific articles and data openly accessible and reusable by 2020.