: Christopher Manske
: The Prepared Investor How to Prevent the Next Crisis from Affecting Your Financial Independence
: Changing Lives Press, LLC.
: 9781732258426
: 1
: CHF 25.40
:
: Ausbildung, Beruf, Karriere
: English
: 240
: DRM
: PC/MAC/eReader/Tablet
: ePUB
There is a story that is usually told about investing through crisis, a story that focuses on inaction and patience. In The Prepared Investor, Manske shows that the true story of investing through crisis is very different, and that if we want to understand how to protect and grow investments during calamity, we should spend more time actively preparing for it. The story of investing through crisis is more complex - and a lot more interesting.

Introduction

“I’m just not going to look at my investments. They say I need to hold on. They say it will pass. But this is once in a lifetime! It’s unprecedented! I’m not going to sell, that’s for sure! Just give it time; someday it will come back. I’ll just work a little longer if I have to. Everyone is going through it; I’m not alone. I can hold up my end of the bargain. Bad times don’t last forever; I’ll just keep my head down and do like everyone else until things clear up.”

—Financial Crisis, 2008

“No one could have predicted this. It’s such a tragedy. Anyone who says they saw this coming is just trying to sell something. It’s affecting so many people! I’ve lost so much money, so what’s going to happen now? Nothing is ever going to be the same, is it?”

—Technology Bubble, 2000

“How will I get through this with my financial future intact? My money has been dropping and I’ve watched my portfolio shrink; I just need to stop the bleeding. What if it keeps dropping? What if I lose it all? This has never happened! It’s totally new! Everyone’s afraid. Maybe I should just sell so I can’t lose any more.”

—9/11 Terrorist Attack, 2001

“This is unprecedented—we’ve never seen this before. No one knows what to expect because it’s all so new, so scary. No one knows what to do. All the news talks about is fallout and unknown consequences. It’s the worst we’ve ever seen! Everywhere I look on social media, it’s clear we’re all in for an extremely difficult time ahead. How are we going to get through this?”

—COVID-19 Quarantine, 2020

There’s a typical Wall Street response to any and all crises, including the ones above: keep your diversified portfolios in place, and someday, maybe years from now, investments will return to where they once were. The typical Wall Street investment advisor will remind us that bad things have happened before. They’ll say, “It will affect us temporarily, but you need to hold on. Someday, maybe years later, markets will recover and we will have put that tragedy behind us.” They’ll add, “Your portfolio won’t disappear, but of course it will be affected. Everyone will be affected. You might have to tighten things up a bit, but it won’t be the end of the world. Take the long view and everything will be okay. We’ll get through it together.”

This type of wait-it-out mentality implies that there is no way at all to prepare. It suggests that, in the face of crisis, you are completely out of control without any action available to move you financially ahead. How has the majority of the investing public accepted this for so long?

The just-hold-on approach has survived to become Wall’s Street’s main answer to crisis investing for three r