A few days ago, a colleague I was talking to asked me if I foresaw the world ever entering a stage of war that could be called World War III.
My answer shocked him. I told him — in no uncertain terms — that WWIII has already started.
Naturally, he had a lot more questions. So I started at the very beginning with him.
I told him that WWIII wasn’t going to be a traditional war in the sense of WWI or WWII.
Instead, I told him to make a list of every possible type of war he could imagine, and check them all off as being part of WWIII.
He struggled with this, and needed a bit of help. So I proceeded to make a list for him.
WWIII, I said, would take the following form …
International military conflict. Probably between China and Japan. Check.
Civil war. In many different parts of the world. Check.
In the Middle East, in Africa. Even in Europe, as the European Union disintegrates and the northern, richer countries of Europe are pit against the indebted southern countries and the periphery of the Union (Greece, Bulgaria, Spain).
Financial warfare via currency devaluations. Check.
Government confiscation of assets and rising taxation against the people. Check.
Increased terrorism and jihadist movements as well as domestic terrorism. Check.
|When you have governments against governments and governments against people, you get two of the nastiest set of conditions possible.|
North Korea pressing the button on South Korea. On Japan. On the United States. Check.
Israel taking out Iran’s nuclear facilities. Check.
Massive domestic social unrest in the United States and other countries around the world. Check.
Cyber-espionage between countries. Check.
Cyber-espionage by governments against its own people. Check.
Capital controls as governments deal with their debts. Check.
Further losses of liberty and privacy. Check.
Continued epidemic of shootings around the world as citizens go off the deep end. Check.
Corporate wars over natural resources. Check.
Place a check mark next to all of the above, I said, and that’s what WWIII is going to look like.
I told my colleague I didn’t mean to scare him, or anyone else for that matter. I’m just being realistic.
Further, I told him …
“When core governments realize they’re broke and their very existence is at risk, like what’s happening now in Europe, Japan, and the United States — you get two of the nastiest set of conditions possible …
1. Governments against governments.
2. Governments against the people.”
I’ve been studying what I call the Cycles of War for nearly 35 years, and WWIII is just beginning. I presented my updated results at the Weiss Wealth Symposium in January and shocked nearly everyone in the audience.
I also showed everyone this chart here, based on thousands of years of data and all known war cycles, synthesized together by a specialized, unbiased computer program designed to look for and forecast regular periods in human civilizational conflict.
And I warned that the Cycles of War will turn up massively in March of this year. That’s what that arrow on the chart “You Are Here” points to.
And that’s what happened. Late March is precisely when North Korea cranked up its saber-rattling to a new level. And in April, European leaders confiscated depositor money in Cyprus. That’s no accident.
These things are happening, they are real, and most importantly, they are just the beginning of a trend that will not top out until 2019 — as you can see from the chart — at the earliest.
So what should you do to protect yourself and your loved ones?
Should you build a bomb shelter and cabin in the boonies and arm yourself to the max? Stock up on months’ worth of food and water?
That’s not my kind of thing. But if people want to do that, they should.
Then I shocked my colleague again, when he asked me how I was preparing. I told him that I thought the best defense of all “was making money, and lots of it.”
That’s the solution I said. It’s not running off into the woods and arming yourself with ammo, food, and survival strategies. That is fine for some people, but for others, it’s simply not practical.
Instead, in my world, money is the best defense AND offense. Period.
And since that’s where my skills lay — in protecting and growing wealth when most investors are losing their shirts — that’s where I spend most of my time.
For instance, the bear market in gold and commodities is not over yet. So I’m making money on the short side of those markets as most other investors get caught up in the wrong interpretation of the current fundamental trends.
Later, when gold and silver bottom, I’ll be buying up all the bargains from the die-hard bulls who are bleeding all over the place.
I’m also getting ready to position my portfolio for what will turn out to be the “Last Great Bull Market in Stocks You Will Ever See.”
After all, it’s not unusual that stock markets can perform exceptionally well when there’s a war environment underway, whether a traditional type of war or the kind I spoke of that’s already started.
The fact of the matter is that equity markets can …
1. Be a hedge against inflation and currency devaluations.
2. Profit from flights of scared capital running out of traditional types of investments, especially sovereign bonds that are going bust.
3. Pay better rates of returns in dividends and royalties than most other investments can do in today’s environment.
And, very importantly …
4. Become a safe haven just like gold often is.
We’ve already entered that stage for the stock markets, just as I’ve been warning. The move up in the Dow to over 15,000 has shocked almost everyone.
But mark my words: You ain’t seen nothing yet for the Dow. It’s headed to well over 20,000 … and probably to as high as 31,000 over the next several years.
And almost no one will understand it or profit from it because they will be stuck in the traditional economic models that say stocks cannot go higher when governments are going broke and the world is in such turmoil.
I say the opposite: Stocks will go higher precisely because governments are broke and precisely because the world is in turmoil. That’s what has happened before and that’s what’s going to happen again.
Until next week …
P.S. For more on how I am planning to make more money in the next three years than I’ve made in the last 10, why not take out a subscription to my Real Wealth Report? Your financial future is at stake, and the least you can do to protect it is hear “the rest of the story” — as Paul Harvey would say.
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