Is Silver The Answer?

Over the weekend I had a discussion with a ‘doomsdayer’. The conversation did not last long because he had a vested interest in me buying silver. I believe the reason was the current administration has done too much damage for the economy to grow here as well as internationally.

Map of Wall Street and the surrounding streets...
Map of Wall Street and the surrounding streets Trinity Church Bank of New York Building NY Stock Exchange Federal Hall Trump Building Cocoa Exchange (1 Wall Street Court) (Photo credit: Wikipedia)

There is no evidence or proof what would occur should ‘doomsday’ actually happen. What would you do with silver? Even if there was value, what would stop someone from taking all your silver? That’s if they wanted it. If doomsday actually occurred governments would cease to exist. If you owned real estate what or who would stop anyone from taking it from you?

If ‘doomsday actually occurs it seems the only thing you should own is weapons to protect yourself and your ‘property’. More importantly you could use the weapons to hunt for food.

OK, this all seems extreme. This all is extreme. I for one believe capitalism is the solution to all our problems here and abroad. We need equity to fuel capitalism. So owning equities is a great way to fight any perceived or otherwise ‘doomsday’.

We create economic growth through investment of capital not through government intervention.

We need to stop watching and listening to the financial pornography out there. There have been problem times in the past and there will be problems in the future. At any point in time there is and was problems somewhere in the world. There is no avoiding this.

What we need to do is focus on our goals and believe in our strategy. This is often a very difficult task. Many times our emotions get the best of us. We are swept up in the media blitz. Often we have friends/relatives/ acquaintances telling us that everything is falling apart. They tell us to seek the safety of gold, silver, CDs, annuities or some other can’t miss product.

This has been the pattern for many investors for decades. Exiting at the first sign of problems. Trying to avoid all losses. In most cases this ends up costing the investor a lot of money. It somehow feels better standing on the sidelines rather than being at risk.

Remember the markets reward us for taking risk. And risk involves downturns as well as upturns. There is no avoiding this. If you want the reward you need to takes the risk.

Over the long term stocks go up.

So stop empowering Wall Street by trading in and out of the stock market.

Find an investor coach/fiduciary adviser for the proper guidance. Learn to love the downturns, for the downturns are the reason the markets rewards you with great returns.

All this without market timing, stock picking and track record investing.

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