I recently watched a video report from Harry S. Dent where he gave his economic predictions for the rest of 2010. It was quite a wake up call. While most of the mainstream news is reporting a recovery of sorts in our economy, he portends a further downturn. And that’s putting it mildly.
In fact, what he predicts is the worst financial collapse the world has ever experienced. And this one’s going to be global. So whether you’re in the USA, Canada, New Zealand or Europe, tougher times are coming…and coming soon. This year of 2010 will see, according to Dent, the NYSE fall to possibly 3800. That’s hard to believe when today (May 2010) the market is enjoying a rebound and is well above 10,000. He predicts it will go well above 11,000 before the economic forces and cycles finally overcome any stimulus. No stimulus package can hold up against ark video driver crashed and was reset the barrage of the huge cyclic economic indicators now bearing down on the global economy.
The reason he gives this information is to warn us to prepare for the storm. Just as a reasonable person would prepare for a hurricane barreling down on their home, so should we prepare our finances for the coming economic perfect storm. It’s time to create our own financial ark. We had better start laying the keel of that ark soon, because we may need to get onboard in just a few months to float off safety after the tsunami hits. He predicts that the mother of all storms will begin to wash ashore by August 2010. So, yes, it’s time to wake up before it’s too late.
Those who have been preparing for the storm for the past few years are going to be fine. Those who have financially educated themselves are going to be fine; in fact, this will be the greatest transfer of wealth the world has ever seen. If you have done little to prepare, maybe you won’t get a big piece of that wealth transfer, but at least you can improve your financial position as opposed to drowning completely when the storm hits. Those who have done little to prepare will be like the person in a small dinghy boat when the tsunami hits. You need a bigger ark to survive this one.
There are no easy solutions to this problem. Governments won’t solve the problem. Printing more money won’t solve the problem; in fact, that is one of the greatest causes of the problem. You must take it upon yourself to build your own ark. You must learn how to lay the foundational keel of your ark with the glue of sound financials. You must then add the frames on the keel that will support your source of cash flow. Now you can nail on the planks of sound money management that will take you away from the stormy waves of over-spending. Finally, you will build the deck to tie together the ark so that your ark can blissfully float into more sunny weather loaded with the financial assets you have as cargo.