May 30, 2013

paulSurviving The Financial Apocalypse

Dear Friends,

I titled one of my recent weekly
MarketWatch articles “Preparing for a Financial Collapse,” but the editor changed it to “9 Steps to Surviving the Financial Apocalypse“. The use of the word “apocalypse” attracted a lot of comments, so the editor at Marketwatch knows much more than I do about getting reader response.

But what I do know is that I don’t know when there will be a financial apocalypse or financial collapse. I believe that I likely – and my children and grandchildren more likely – will be exposed to stock market losses much greater than investors expect. At my age, those losses might be difficult to recover from. So, in this article, I explain what I have personally done to be prepared for the severe bear market in my future. It could start tomorrow or it might be another 20 years, in which case I might miss it. But if it comes during my lifetime, I believe my portfolio is built to last, even through another 1973-74, 87, 2000-2002, or 2007-2009.

As I was responding to critical comments about the use of the word apocalypse, I realized that the personal meaning of “a very large loss” varies greatly.  For one fellow, the worst loss he ever wants to face is less than 10%, while another investor is willing to lose 80%. If I tried to determine what it would take for these very different investors to feel like they just suffered a “financial apocalypse,” I suspect it might be a loss of 15% in one case and 90% in the other. My apocalypse is probably a loss of 30 to 40 percent.

My goal for each one of you is to help you find that outside limit of loss that you are willing to accept before you cash in, and hopefully make sure you never get in that position.

Thanks for you interest in learning more to protect your financial future. Please be sure to get your free eBooks at my website and pass along the resources. In the coming weeks I have some exciting news I’m eager to share but, for now, I wish you a healthy, happy summer season!

To your success,

Paul Merriman

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