Worst case analysis is a vital survival tool for investors
Posted by Adam King on November 29, 2010
Prepare for the worst, hope for the best.
November 29, 2010 – Worst case analysis is a vital survival tool for investors, one that today strongly suggests diversifying with certified gold coins to preserve wealth through a very tumultuous and unpredictable future. Naysayers like to characterize those of us who examine the worst case scenarios and hedge against the threats as doomsday fanatics, but doing so is simply a logical and practical necessity. When those with their heads in the sand eventually come to that understanding it might be too late.
It doesn’t take a great deal of imagination to come up with possible worst case outcomes to the current Korean crisis. The world has not faced a threat this serious since WW II. North Korea is a rogue nation with a terrorist mentality, a delusional state that has its finger on the nuclear button and no regard for the consequences of its actions. And its strongest ally is China.
China’s mission is to dominate global economics, and the country has proceeded along a calculated and controlled path to that end for over four decades. How that plays with the lunatic actions of its neighbor is hard to predict, but if China sees economic advantage in letting North Korea run amok, we can be certain they won’t interfere.
Is the sky falling? Not at the moment, but the possibility exists. The surest path to a secure financial future is to thoroughly and dispassionately analyze every potential threat and opportunity and then take action to maximize the possibility for a successful outcome. A vital part of that process is to envision the worst possible scenarios and develop a plan for when all else fails. Key to such a plan is a sound investment in certified gold coins.
Stewart Lawson
Senior Staff Writer – Certified Gold Exchange
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US Gold Market