RHYS MARTELL  |  financial advisor

Emergencies & Opportunities


"The Great Depression - A Diary..." Honestly though, one of the best books I've read in the last five years hands down. And the reason that it's so good is that it was written by Daniel B Roth (Benjamin Roth) and he was a lawyer who had a front to seat to the whole thing while it was going down. He notes everything that's happening while it's happening. What's happening to all the different asset classes. How everything is getting pummelled and destroyed - Industry, real estate, stocks, bonds. Everything is getting mangled and he is noting it as it happens.


It's fascinating to watch such a heavy duty crisis as it's unfolding. But for me and what I do I think it's very important that we research and understand serious financial tsunamis. We don't just want to study the good times and what we do during those times. What do we do when things get absolutely terrible? How do we prepare ourselves?


I recently did a video on making sure you have enough cash to get yourself through a year's worth of expenses, and I got a lot of feedback on that. People were saying how that's a lot of money to just have sitting aside in cash, not earning anything. I totally get that, and it might just be a goal that some people never end up getting to. But I think it's a worthwhile goal, because one of the things we learn from the Great Depression is that those who had cash when things were going absolutely haywire had a much better time navigating.


Everything was getting destroyed - people couldn't even get money out of their banks. Or they could only get a portion of their money. They were knocking down buildings because they didn't want - or couldn't afford - to pay the full property tax. For those who had rental properties it was very difficult to collect rent because nobody was working and therefore couldn't pay their rent. And then the landlord couldn't pay their mortgage. The whole system was just collapsing.


Stock prices were getting hammered (everything was getting hammered), but those who had cash to ride things out didn't have to sell their assets at ridiculously low prices. In fact, not only did they not have to sell, but some of them who had enough cash during the period were able to buy assets that were being sold at insanely low prices.


I don't know if anything like the Great Depression is ever going to happen again. I honestly have no idea - maybe, maybe not. But preparing for crisis, not just so you can manage and make it through - but so you can take advantage of opportunities is incredibly wise. It can pay huge dividends and is something that I recommend to all of my clients.

 

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Rhys Martell

Disclaimer:

This article is for educational purposes only and is not intended to provide specific personalized advice including, without limitation, investment, financial, legal, accounting or tax advice. Opinions expressed are those of the owners and writers only. Every effort has been made to compile this material from reliable sources, however, no warranty can be made as to its accuracy or completeness. It may also include forward looking statements concerning anticipated results, circumstances, and expectations regarding future events. Forward-looking statements require assumptions to be made and are, therefore, subject to inherent risks and uncertainties. There is significant risk that predictions and other forward looking statements will not prove to be accurate. Please consult an appropriate professional regarding your particular circumstances. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus or the fund facts before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Mutual Funds and Segregated Funds provided by the Fund Companies are offered through Worldsource Financial Management Inc., sponsoring mutual fund dealer. Other Products and Services are offered through Rhys Martell/Well-Built Plans Financial.


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