• Price Change UP Icon Gold $2,192.00 +16.00
  • Price Change UP Icon Silver $24.59 +0.20
  • Price Change DOWN Icon Platinum $904.00 -4.00
  • Price Change DOWN Icon Palladium $1,005.00 -1.00
Share on Social Media

Do you feel investors are prepared for what lies ahead in the coming years?

Robert Wiedemer |
May 6, 2015
Video Transcript

It is amazing to me and anybody in the investment community really, if they’re honest, how strong the recency bias is. Meaning if life was good last week or the month before, life is going to be good forever. Yet, in only a very short period of time, I mean since 2000, we’ve had two major financial crises. We almost forget that happened. In fact, we sort of… Well that’s an aberration, no that’s obviously the normal. That’s the real normalcy bias is that we have these crises and we’re having them I think because we’re having bigger problems in terms of growing our economy fundamentally. Not going to go into that in big detail, but fundamentally it’s not growing like it used to, yet our financial asset prices are going up due to government stimulation.

Ultimately, that’s going to be a huge problem and not just ultimately…people think it could be years off. Again, people in 2004 thought California real estate could go up another 15 years at 20% a year, yet only one more year. That’s all it was. In January of 2000, more money was put into early stage venture businesses that any other month previously. Three more months later, the Internet bubble collapsed. This stuff can change quickly even if everybody thinks it’s good, because there’s a recency bias…”Yeah, but last month was good Bob. So it’s going to be good for the next 20 years”…don’t think so. Be careful, diversify, and be sure you have something like gold as well as part of that diversified portfolio. It may become the only thing that really performs longer-term.

Never Miss Investing News from Monex

Sign up to receive our emails.

Get Your Free Report
A Rising Storm
All form fields are required *
Thank You

Want your kit sooner?

Faster delivery
is available by phone.

800-444-8317

Download Your Report

Enter your phone number to be connected to a Monex Account Representative.

Thank You
Want your kit sooner?

Faster delivery is

available by phone.

800-444-8317
All form fields are required *
Embed Spot Prices!
Copy and Paste below code into your HEAD tag / before end tag of body to embed chart.
Copy and paste code below wherever you want your chart displayed.
Copied to clipboard
Embed This Chart!
Copy and Paste below code into your HEAD tag / before end tag of body to embed chart.
Copy and paste code below wherever you want your chart displayed.
Copied to clipboard
FREE REPORT OFFER
A Rising Storm
Thank You
Please check your email for a confirmation link and Free Report!
I agree to receive news and promotional material from this website and understand I can cancel at any time. Privacy Policy