006-2020 Aftermath

Title: Aftermath (Seven Secrets of Wealth Preservation the coming Chaos)

Author: James Rickards

Hi there, I know I’ve been absent for a while and I’m a little behind with regards to the volume as I did last year. Last year was my best year i.t.o. the number of books I managed to read, since ever. This year I’m lagging a bit behind, but I’ll definitely try and make it up by jotting down some great reviews.

I have been browsing in the bookstore and on my liked pages for good reading material, and interestingly found some great recommendations in the books I have recently read. These I will keep you posted on once the last sentence was read over.

But, without further ado, let’s get into this book for a starter.

Just before I left my home country to work abroad I picked up a few finance books to accompany me there. Two of them I have already posted about, namely ‘Rich Dad, Poor Dad’, and ‘The Richest Man in Babylon’.

One thing I’d like to make clear from the start is that the book is written for a time-specific moment. Meaning, the wealth preservation tips that are given in this reader relate specifically to the time we find ourselves in right now (before the virus broke out, the print was before then). Some people are arguing that the world economy could be standing in front of another financial bubble. Stocks markets could see a downturn and we could enter a recession.

From the start I’d like to tell you that I’m not an expert in this field to make such a prediction. It may happen soon, not very soon, in the distant future. But right now, the book focuses on that it could be coming soon (and by soon I’m not stipulating a time frame), and that there are some ways which investors can utilize to hedge themselves in order to possibly reduce the impact of a possible bubble burst. Maybe I shouldn’t be using the word bubble burst, given how we react to certain words.

There are so many investment brokers out there, and as many investment products that you may choose from to make an investment for your future. Many of us may not be as financially educated to understand as much of it as we’d like to (specifically because we’re dealing with our hard-earned money), and therefore we don’t know what to invest in.

This book was written by an author, whose work suggests that you should invest in such a way that will best protect your wealth. Other authors will again suggest that the market may experience a bubble burst (here I go again), but that it will recover and that share investing is the way to go.

The one tells you you should preserve your wealth. The other tells you the market will recover, and that when it does, your investment will grow better than the strategy followed by the aforementioned investor, whose strategy will only preserve your wealth, but not grow it.

At the end of the day we’re stuck in-between wanting both.

But to get back to the book, I’ll give you some insight to this wealth-preservation book. As mentioned in the title, he presents you with seven investment tips on how to best preserve your wealth in present-day times when some expect that a bubble burst could be imminent.

The way the chapters are structured is by giving an extract of present-day events, and also past events (past meaning the 20th century). Then after the events are explained, and how the author believes we might be coming back to some of those phases, he ends the chapter with the investment tip he believes is an appropriate response we should follow should a situation as described in the chapter come to pass.

Some of the tips given are 1) reducing exposure to high-volatile stocks, and rather back companies that can weather hard times better, 2) allocating a little more of one’s portfolio to cash, than when the economy is in a growth spurt, 3) allocating your portfolio to include some resources where possible, since they have tangible value. There are a few more, but to get them it would be better to get yourself a copy and read the whole chapter dedicated to the investment tip.

Summary:

Overall, I enjoyed the way the author presented the investment tips with some valuable historic background. I also learnt a few more things, for example how the Gold Standard came around quite unintentionally, and what finally led to its removal. The book is well written, but does require the reader to understand some of the economic terminology (which can be solved with a google definition search or the old Oxford English Dictionary booklet). I therefore give the book a rating of 4.6/5