Why U.S. Dollars Will Not Be Used as Firestarter

By editorial@smallcapinvestor.com (Ian Wyatt),

Shutterstock photo

Apocalypse Now was a great title for Francis Ford Coppola's 1979 Vietnam War classic starring Martin Sheen.

Today, many financial pundits are claiming that the United States - flooded with debt, burdened by high unemployment, and with an economy growing at a snail's pace - is on the edge of a new apocalypse.

"Financial Armageddon," "The End of America," "American Apocalypse"
- whatever you want to call it - that's what they claim is approaching.

If you believe them, the world as we know it is about to change for the worse.

I don't believe them. Not one bit.

These financial pundits are capitalizing on the fears and concerns of sane investors like you. Don't let them! They want you to take all of your personal wealth and buy gold bullion. They want you to own a gun, build a bunker in your backyard, and keep at least a few months of food and water supplies on hand - just in case.

Some are even going so far as to give away cheap, made-in-China "emergency radios" to all of their new customers - in the event your phone stops working.

Sound ridiculous? I promise I'm not making it up.

If you want to hear that the world is getting worse every day and you want to believe that our economy will be brought to its knees a la the Great Depression, there are plenty of forecasters who will support that point of view. They will tell you that the end is near, and try to persuade you that they have the solutions to surviving a world in decline.

Here's what I think: Everyone is entitled to their own opinions, financial pundits included.

But they're not entitled to their own facts.

Sure, there are many reasons for concern today. Our government's debt grows higher by the day. Unemployment is high and economic growth is slow. And our representatives in Washington - Democrats and Republicans alike - are unable and unwilling to take the bold actions required to turn our nation's finances around. These were the key reasons for the downgrade of U.S. debt by rating agency Standard & Poor's.

But I don't think that the world is coming to an end. I don't think that America is going to go bankrupt. I don't believe that the U.S. will default on its debt.

I don't believe U.S. dollars will be used to start the fireplace when the heat no longer works. I don't believe that gold and silver will be the only "money" accepted for goods and services.

I'm a cautiously optimistic person. I can recognize challenges, but understand how those problems can also spell opportunity. I'm more likely to be on the lookout for profit opportunities during times of uncertainty, rather than ducking for cover.

And I see a tremendous number of opportunities opening up that should be of interest to investors who believe that America will persevere through anything thrown in its way.

I am by no means permanently bullish on the stock market. On the contrary - I have been bearish on stocks at many times in the past. I fully recognize and am willing to discuss the many challenges that exist today, and how they affect citizens and investors.

But I'm writing today to tell you that America will not be coming to an end any time soon. I suspect that you feel the same way.

As a reasonable person who has seen the ups and downs of the economy, seen our nation wage several wars, and watched political showdown after showdown in Washington, you know that our country's problems today aren't insurmountable.

Take a moment to consider the progress of our country and the improvements in our standard of living over the last 100 years.

We have better access to health care. Life expectancy is so high that entry into the social security system has been pushed back by years. Our children have access to all sorts of information, previously unavailable, by using computers at home and in the classroom.

We have automobiles and homes that heat up at the touch of a button. Travel is relatively quick, easy and affordable. You can call home to the United States from your cell phone while in China, Japan, Argentina or Europe.

I don't think things have gotten dramatically worse. In fact, I think they have greatly improved.
While it's easy to remember the good things about the past, it seems few people are able to see how much better things are today.

So while it's easy to focus on the problems - of which I admit there are many - it's just as easy to forget about our progress, our improvements in standard of living, and our global standing today relative to other countries around the world.

It's easy to point fingers, to blame our politicians in Washington. No doubt most of them should be fired for their handling of the debt ceiling and budget cuts. I wouldn't trust most of our leadership to sweep the floors in my office.

But just because our political system is dysfunctional doesn't mean our entire country, or way of life, is in jeopardy.

In the coming weeks and months my team of researchers and I will continue to present some of the best opportunities available in today's market. And within one week I'll be releasing two special reports highlighting conservative investment opportunities for long-term investors who believe, as I do, that America's best days lie ahead.

These reports will be part of my real-money $100K Portfolio newsletter advisory service. I'll let you know when they are available.

Have a great weekend,

Ian Wyatt

Disclosure: none

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing Stocks
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