BY JUSTIN WOOD
Have you heard the good news? Financial armageddon has been averted. The economic collapse in Europe has been cancelled. Everything is going to be okay. Well, actually none of those statements is true, but news of the “debt deal” in Europe has set off a frenzy of irrational exuberance throughout the financial world anyway.
Newspapers here in Australia and all over the globe are declaring that the financial crisis in Europe is over. Stock markets all over the world are soaring. Local stocks are up over 3 percent today, and this recent surge is helping the S&P 500 to have its best month since 1974. Global financial markets are experiencing an explosion of optimism right now. Yes, European leaders have been able to kick the can down the road for a few months and a total Greek default is not going to happen right now. However the core elements of this “debt deal” actually make a financial disaster in Europe even more likely in the future.
You can’t solve a debt problem with even more debt. But that is what this debt deal is trying to do.
The current solution is likely to cause significant problems down the road. But most investors have not seem to have figured this out yet. In fact, most investors seem to be buying into the hype that Europe’s problems have been solved.
Basically, we have got a huge mess on our hands, and this debt deal just made it a lot worse.
Yes, a financial collapse has been averted in Greece for the moment, but the truth is that there is no real reason to be celebrating this deal.
A financial storm is coming to Europe, and this “debt deal” has made that all the more certain.
So what can YOU do to protect yourself financially?
One thing you can do is prepare. Just like we prepare for cyclones or floods, you should also prepare for economic downturns.
Practical things you can do. If you don’t own any gold, you should have some. Gold has traditionally been a safe haven asset and helps protect you from economic storms. Although, now priced at $1720.00 per ounce gold can get a little expensive. So silver is a good alternative, now priced at 34.38 dollars an ounce.
If you have read any of my past articles you will know the best defence against reckless government spending and high inflation is to buy gold and silver bullion. There is just so much to know and understand on the topic of precious metals investing that I have just written an eBook on the topic covering 6 chapters.
The other major thing you can do is educate yourself. If you don’t know what is going on and why, you need to find out. If there is one thing that can help calm your fears it is information. Our site has tons of information that can help educate yourself.
Get Smarter. Get Educated.
Justin Wood is the director of Property Toolbox Australia, a successful investor and a leading expert in wealth creation through property, businesses and commodities. Justin has educated himself to build an extensive investment portfolio through a safe strategy of buy, hold and renovate.