Few investors think about what they’ll do if what they thought would happen doesn’t happen… or if something they don’t think will happen does.
That’s partly why most Western (and soon Eastern) economies are in a hole. They thought the last 30 years of economic growth was real. So what did they do? They leveraged up…
And they thought that was working too. So they leveraged up even more. Trouble is it wasn’t working. And they had no Plan B investment strategy… Why? Because no-one asked, “What if…?”
So, the banks went hell-for-leather into the housing mortgage market. They thought house prices could never fall. Why? Because their financial models told them so.
Turns out their financial models were wrong. But they had no Plan B investment strategy.
And – this is where we get back to you – individual investors rarely have a back-up plan either. They’re convinced they’re right… that what they believe should happen, will happen.
But what if doesn’t happen? What if it never happens? Or, what if it happens… but not when you think.
It’s the subject of our short presentation at the Doomers’ Ball. And it’s part of what we were getting at during the panel discussion at the Gold Symposium last week. We wanted to know whether the experts had a Plan B investment strategy – or was it just all about gold and silver.
They’re convinced they’re right and no-one could knock them off their path. But why are they so certain? Perhaps the answer can be found in a comment made by Eric Sprott during an interview on Sky Business Channel’s Perrett Report.
Sprott said, “I think it was important for people like Ben [Davies of Hinde Capital] and myself to come here and kind of preach the Gospel as we see it…”
The Gospel According to…?
That’s it.
Cheers.
Kris.
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From the Archives…
The Onward March of the State
2011-11-11 – Kris Sayce
Lose a Shirt, But Gain a Wardrobe
2011-11-10 – Kris Sayce
Neither a Borrower Nor a Seller Be…
2011-11-09 – Kris Sayce
Roman or Zimbabwean
2011-11-08 – Kris Sayce
Lighting a Match to Inflation
2011-11-07 – Kris Sayce
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