Yearly (Q4) Wealth Growth Update - Part 2

The second part of the end of 2024 Wealth Growth Update

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Disclaimer: The content provided is for entertainment purposes only. It is not intended as financial advice. Please consult with a licensed financial advisor before making any investment decisions.

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This is the second part of my 2024 end of year Wealth Growth Coverage. The first part can be found here

🚀 Future State

The financial world is moving to a system of haves and have-nots. Where the haves have assets and have have-nots have no assets. Having assets is like a life vest, as the water rises, you get carried up with it. Those who don’t are left behind.

The reason for this - inflation.

Governments are broke and they have too much debt. They also print money to pay for their debt obligations. This causes everything to go up in price and robs from those who don’t hold assets that can be easily sold.

I believe that the next two decades will see wealth inequality rise and growing anger at the disparity. Governments are the ones who create this issue and will be the first to point the finger to divert blame at Businesses and Asset holders.

They will then, likely, introduce austerity, tax increases, more types of tax, wealth tax, asset confiscation and so on.

⚠️ Risk

Risk looks extremely high.

The unfettered power afforded to the USA from being the world’s reserve currency coupled with the Petro dollar has given them the ability to do anything, anywhere to any degree. It would be illogical not to use this power for subversion, accumulating more resources and ensuring the future is growth oriented.

Whenever this up and right growth slows down severely - war tends to get eyed as the kick starter to turn over the economic engine. The Biden administration have and will likely do whatever they can to accelerate conflict before their time is done.

From a stock market point of view - the last post showed that the S&P relative to its Earnings was 2 Standard Deviations above the mean.

🛡️ Safety

As an extension to the topic of Risk, I have been taking steps to be prepared should anything happen where I live. I’m no prepper, but the upside/downside risk of not being prepared, strongly suggests that I have independence for food, water and heat.

We know that a few rumors that can trigger panic buying. And taking down a power grid or Gas infrastructure through a Cyber attack is not hard whatsoever for a country.

My wife refused to bulk buy items before Covid, I kept on pressing her to do it. Grudgingly she did. We were a month ahead of the panic buying that occurred.

I’ve bought a Chinese Diesel Heater, Crank Radio and lots of canned food that should last 1-2 years of shelf life. I have medical, utensils, lighting stored in the basement too.

I see it as insurance. Or a Call option. The right to buy but not the obligation.

In my mind’s eye I see it like rock climbing. If you go up the rock face, it makes sense to spend some time to secure some anchor points on the wall, rather than risk falling all the way down the rock face.

This includes an end of year review of personal safety, insurance, will and power of attorney.