I usually loathe that simple minded advice. To not worry is to deny your humanness, however"-.On January 22, 2008 pundits will claim hindsight as financial portfolios lose value. Why the surprise? The national public/private/foreign debt is 9.2 TRILLION dollars! New born babies inherit $35.000.00 in public debt upon the inhalation of their first breath.
I have received several phone calls alerting me to the disaster of January 22, and others in a panic about the potential of economic catastrophe. My response has been subdued because I am not surprised, or, overly concerned. That is because I am prepared. This is not a surprise to me. Two years ago I could not have predicted with any degree of accuracy as to when a collapse would occur, only that it would occur.
Americas economy has required mass hysterical blindness, or at least selective vision, in order that it may operate for the last two decades. It's our fault. America loves easy. It has been easy to buy into the illusion of sustainability. It feels good to participate as an ignorant audience member. Ignorance feels good, or at least provides the circumstance to become disconnected, and being disconnected feels good. When reality makes you feel uncomfortable, create a new false reality. But even the disconnected know that the disconnect is only a temporary staving off of the final reality. Like not opening a collections envelope, the financial reality still exists inside the envelope, even when you stuff it into a drawer or throw it away.
Americans are complicit and pathologically ignorant, to include elected "leadership". The economy is the topic of the hour, but across the board America has bought into the Super Bowl mindset, all while their foundation was being undermined and destroyed by the short term feel good solutions provided to us by those people that we elect and empower to guide every element of our lives. If so many young innocent human beings were not being injured by this predicament, I would say without reservation that we deserve what we get. And precisely what we are going to get is the mystery.
If the numbers associated with the public debt alone are correct, then America has been bankrupt for a long time. Thus, it was destined to explode, implode, collapse and do whatever it is going to do for at least two decades, probably longer. We have talked about it many times on www.Straittalks.com, www.wnjc1360.com, however, without exception there has been virtually zero interest. But the Super Bowl is a HOT topic"-why? It's an easy feel good way to deny reality.
Remember"-the stock exchange is an abstraction. Hypothetical wealth predicated upon consensus. (That is not a bad thing, since all value, even that of gold is concensus or fiat value. It can be no other way.) The dynamic variable in the market is always the human element, and that is where the madness comes in.
What degree of madness will manifest on January 22 is an unknown at this moment, but if greed driven human beings cave to pressure as per usual"-then the greed driven stock markets will suffer due to the short term thinking and life long absence of courage of those invested in such.
Investing is a smart thing as long as it does not dominate your daily thoughts. If you count your money every day, you are greed driven and way too focused on money. If you want to enjoy your daily life, invest your money smartly and check its performance once per year, maybe every six months. Yes, we have a portfolio, and yes, we are not even thinking about it. (Well, other than to say we are not thinking about it. This is entirely different from being disconnected.)
What does it all boil down to? Like Voltaire said, "Men will always be mad, and those that think they can cure them are the maddest of them all"-. Try to not be part of the madness"-in other words, Don't Worry, Be Happy. Life is too short to freak out like the other minions