New Years is all about RESOLUTIONS and PREDICTIONS, isn’t
it? Last year was loaded with surprises resulting from the collision of significant economic and political events.
This year may surprise us even more. First,
be aware of the current conditions that are stirring up the pot:
America's debt load—The U.S. government, consumers, and businesses are drowning in trillions of debt!
Social Security, Medicare and
Medicaid are $99 trillion behind.
Growth
of government—The expansion of the government's involvement in the economy is (and will be) massive—bail outs,
taxes, regulations, controls, spending, etc.
What we need now is the restoration of the consumers’ confidence. Whether it is done by
the new government, or by industry, the consumer needs to see things turn around. Then we will pull out
of this economic correction.
Because the economy is very weak right now, it is time to prepare. Being fore-warned and getting prepared is crucial.
Though I don’t have a crystal ball, here are
my five predictions and ways to prepare:
- I anticipate
a major push for a “world-wide economy and currency.”
- I believe we will start to
see more requests for state and municipal bailouts.
- I anticipate an inflationary increase by
2010.
- I expect a rise in gas prices again this year.
- I expect
to see international conflict over natural resources.
We need to pray for our country, and prepare. Here are three ways:
- Re-assess your job. Are your job, your company, and your industry
putting you at risk for layoff due to economic stress?
- Keep a cash cushion. Have money set aside
in a safe venue such as a money market fund. This is not for long-term purposes since inflation will be a major issue.
It is there for an emergency only.
- I have begun and plan on shifting our portfolios into
ETFs more tied to "human need" such as food, water, energy, etc.
In closing, though the above looks negative, may I remind you that “change
is the most consistent thing in life.” The changes this time may be difficult, but we have always come out better than
where we started!
For 2009 and your
future,
Robert Bard
