A recently released poll showed that 72% of Americans are concerned about an economic crash – the highest level ever! In June, a Gallop poll depicted a nation discouraged about its present and worried about its future, and highly doubtful that its institutions can pull America out of its trough. While leading economic indicators show that we are slowly emerging from this economic malaise with no signs of a recession on the horizon, a new set of external risks are coming to light.
In July, we (Rick and Cassie Laymon) were among a small group of hand picked investment advisors convening in Washington D.C. at the National Security Investment Consultant Institute to discuss the realities and present risks of economic warfare. The NSIC brings together leaders in national security, business, and financial advisors to provide a free market solution that helps protect America’s national security and economic infrastructure. We were briefed by luminaries such as current President of the American Bankers Association Gov. Frank Keating (OK), Congressman Bob McCollum (OH), retired 4-star General James Conway, Founder of the D.C. think tank Center for National Security Policy Frank Gaffney, successful Internet entrepreneur Rod Martin (Pay Pal), CEO of Overstock.com Patrick Byrne, former CIA analysts and Iran experts Fred Fleitz and Clare Lopez – all on the serious security problems we face in the form of cyber attacks, economic warfare, currency risks, and other geopolitical threats.
NSIC’s Chairman and Founder Kevin Freeman, a former Templeton investment executive, Pentagon sub-contractor, and New York Times best-selling author (Secret Weapon and Game Plan) stated, “What we see as the marketplace, our enemies view as the battle space”. The Chinese, the Russians, and Middle Eastern terrorist groups have each expressed interest in damaging our economy as a means of warfare using both cyber and financial weapons. Unfortunately, these realities are not something being talked about in the mainstream media as they do not align with the “official narrative” of the current White House administration.
So, why are we sharing all of this with you? Our aim is certainly NOT to spark fear or panic. Rather, we believe that being a biblically wise investor includes being aware of the real risks and being prepared for them should they come into play (Matthew 10:16). Our ultimate goal is to provide investors with solid answers on how to formulate a sensible response, prepare for multiple scenarios and to uncover opportunities to invest in America’s future. While there continues to be an ongoing dialogue at the NSIC around these concerns, we did come away with several practical action items for immediate implementation. First, as a precaution we are recommending that all of our clients keep a modest stash of emergency cash on hand. This would be needed if there is ever an extended power grid outage (think hurricane Sandy) or bank restrictions placed on daily cash withdrawals (like Greece).
Next, we have spent several months developing a “Disaster Portfolio” designed to help preserve investment capital and which can be quickly and easily deployed in the event of a disaster situation (like 9/11). This portfolio contains securities which are likely to hold their value or perhaps even go up under such dire circumstances… Stay tuned for more defensive strategies and best practices to come!
While none of this is pleasant to think about, please know that we have a contingency plan in place and are certainly available to address questions and concerns.
“For God has not given us a spirit of fear, but of power and of love and of a sound mind.”
~ 2 Timothy 1:7