Say one day a person saw a black cat and he decided to sell all his stock because he associate black cat as a bad omen.
His selling result in a stampede in the stock market leading to more selling, margin call, limit down and suspension of the stock.
This is theory of reflexity by George Soros.
If malaysian stock collapse the winner will be those who are flush in ringgit or what we say cash is king.
If say, a financial crisis happen in malaysia and people start running for safe heaven and start leaving malaysia in trove. The winner will be foreign currency.
If the world were to enter a financial crisis, be in subprime mortgage or covid. The next safe heaven is US dollar. US dollar is known as the american gold or the ultimate safe heaven.
If US dollar collapse then the financial world will enter dark ages, whereby only commodity, gold and crypto survived as they are people's food, God's money and people's money respectively.
However, when money or more exact USD is no more in existence there will not be buyer for your food, gold or crypto as people will not accept a demoted US dollar as a medium of exchange.
But, people still need to eat, stay and continue with their daily life. So, they will resort to barter trade. In barter trade, we need a coincidence of wants.
If there is no coincidence of wants, we need a medium of exchange. During this trying time when the USD collapse the best medium of exchange would be gold, silver and crypto.
Gold and silver had stood the test of time since the eqyptian as a medium of exchange. So no doubt, it will still be relevant during the everything collapse environment.
Crypto on the other hand is the new revolution in cash technology as a medium of payment. Which can hopefully withstand the test of time. However, crypto is not tangible as it will be lost if the world wide web or Internet when down or not functioning making crypto a high risk investment during this trying time.
During this time of financial tribulation, investment such as automobile, mansion, antique, watches, precious gems and everything that glitters will not be gold and will enter as rubbish grade investment. In WW2, everyone is only interested in survival which is food and shelter, making demand for luxury goods non existence all together.
Therefore, during this trying time the best investment is a safe place to stay, food supply and precious metal such as gold and silver. We must thank God for the good days and also the bad days as we know God creat one and another.
The best advice is to depend on God's grace and mercy. God's mercy on our wrongdoing and sin as we repent and God's grace on our lifes during financial tribulation.
Moral of the story: It is better to be 20 years earlier than one day late when everything collapse occurs.
May God's Mercy be with you now and forever.
Be Bless,
Dr. Lion.
No comments:
Post a Comment