FINANCIAL
PANDEMIC
PREPAREDNESS
Financial Pandemic Preparedness
We’re currently in the middle of the biggest market crash since the Great Recession of 2007 to 2008.
But unlike the Great Recession, during which the markets fell by about 49% over the course of 16 months, the Dow
Jones recently dropped by 37% in less than six weeks.
To call it a wild ride would be an understatement.
Unemployment is soaring, dreams of retirement are eroding, and experts warn that we may be facing the dreaded
“second wave” of the pandemic sooner than expected.
By April 3, 25% of retirement savings were gone, according to the Russell 3000 Index.
And a survey by MoneyRates found that about 37% of those nearing retirement either lost their jobs or at least some
of their income. Of that number, 29% were planning to dip into their retirement accounts to make ends meet.
Experts believe the effects of the pandemic on retirements is going to be felt for the next 20 years.
As if all of this wasn’t enough to stomach, analysts at Deutsche Bank believe that within the next 10 years, there’s a
33% chance we’ll see at least one of four major tail risks (a tail risk is the chance you’ll lose a portion of your portfolio
due to a rare event).
The four tail risks they believe we’re most susceptible to are a major influenza pandemic, a devastating solar flare, a
catastrophic volcano eruption, or a global war.
Extend the timeline to 20 years, and the odds increase to 56%.
The major event experts think we’ll most likely experience? A solar flare, which would have a catastrophic effect on
our power grid, affecting critical infrastructure from communications and the internet to hospitals and medical care,
among countless other systems.
Just what we need as our country is recovering from a pandemic that has filled hospitals and forced large numbers of
employees to transition to teleworking…
So how do we survive these unprecedented times?
By having our own wealth breakthrough…
The Key to Financial Freedom
What exactly is a wealth breakthrough?
A wealth breakthrough is when you suddenly have that epiphany, when everything makes sense, and you realize how
to attain financial freedom and security.
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It’s not easy…
There’s no formal financial education in the school system, so many people have no real understanding of the difference
between money and wealth, or worse, they have a warped perspective of how money and wealth are related.
“Wealth isn’t how much money you have,” says entrepreneur and educator Roger Hamilton, “wealth is what you’re
left with if you lose all your money.”
You see, building wealth and achieving a wealth breakthrough are largely about mindset.
And that’s what the experts in the Wealth Breakthroughs series are here to teach us, as they reveal how they approached their own wealth breakthroughs, and how you can do the same.
Like former Wall Street executive turned journalist Nomi Prins, who reveals the most important thing you can do to
protect yourself and your assets in times of crisis…
Protecting Your Wealth in Times of Crisis
There’s a huge gap between what Wall Street knows and what the average investor knows.
But everything that happens on Wall Street, from the catastrophic meltdowns of companies like Enron to massive bailouts,
has an affect on the markets, and thus, the average investor.
Seeing these events firsthand while working for firms like Lehman Brothers, Bear Stearns, and Goldman Sachs, Prins
realized that while the stock market is a great long-term investment, there’s also a degree of risk and volatility there.
And she figured out exactly how to mitigate that risk.
“I don’t invest in the stock market on a long-term basis,” says Prins. “I invest over shorter periods, not day trading,
but moving in and out depending on what’s going on.”
By keeping an eye on news and events, and knowing how those events are going to affect the market and her investments, Prins is able to lock in gains and move out of the market before suffering a huge loss.
So you might be wondering, if you’re moving your money out of the markets, what are you moving it into?
You have a few options, such as cash, or everyone’s favorite precious metal… gold.
The Asset That Soars When Markets Crumble
“Gold is seen as something you want to own when the world falls apart,” said Adam Baratta, co-founder of Advantage Gold.
When investors lose confidence in central banks and the value of the dollar (or other currency), they flock to gold as
a store of value.
And gold has indeed held its value well.
So well that it’s the best-performing asset of the past 20 years.
From the end of 1999 to the beginning of 2020, gold increased 5.6 times in price, from $288 an ounce to $1,600.
In comparison, the S&P 500 only increased by 2.1 times.
But that certainly doesn’t mean gold has peaked.
Due to the current economic circumstances and the technical indicators he’s watching, best-selling author and former
investment banker Jim Rickards believes “this may be the last opportunity to buy gold below $2,000 per ounce.”
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While gold is certainly a great way to protect your wealth when the markets crumble, how do you grow that wealth
during times such as these?
Growing Your Wealth While Others Panic
That leads us to wealth breakthroughs. Most importantly, achieving your own.
Because having your own wealth breakthrough is the number one surefire way to grow your wealth and achieve financial
freedom while everyone else is panicking and worrying about what the markets are doing.
It’s important to lean into your strengths, and rely on what you know and understand best.
Maybe you understand real estate, and are able to use your experience there to identify a way to capitalize on the real
estate market to generate enough income that you can be financially free.
Maybe you have the mindset of an entrepreneur, and you can use that talent to start your own business.
Or, you could always buy a business. It’s actually easier and requires less upfront capital than you might think, as
long as you know where to look and how to make a deal.
You’ll learn exactly how the best and the brightest have done all these things and more in the Wealth Breakthroughs
docuseries, and how you can, too.
Not only are these lessons the key to surviving the current market collapse, they’re also integral to building lasting
wealth and leaving behind a legacy that can endure for generations to come.
© Copyright by St. Paul Research, LLC, 808 St. Paul Street, Baltimore, MD 21202. All rights reserved. No part of this report may be reproduced by any means
or for any reason without the consent of the publisher. The information contained herein is obtained from sources believed to be reliable; however, its accuracy
cannot be guaranteed.
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