By E.B. Tucker, editor, Strategic Trader
I spend 0% of my time worrying about – or preparing for – a crash. Here’s why.
I run a “barbell strategy” with my personal assets.
Picture a metal bar with weights on it.
On one side, I have real assets. These are physical gold, unleveraged property (if you owe on it you don’t own it), and cash value on whole life insurance. These assets are incredibly boring, but they represent real wealth. I think it’s also fair to include some stalwart stocks on this end of the barbell. I also own world-class, dividend-paying stocks. These blue-chip stocks are so boring, I don’t even look up the quotes – they’re not about making huge gains… they’re just equity in big, stable firms.
The other side of the barbell is much more exciting and carries more risk. I’m in tons of private placements. I must have done six to eight recently… I have a massive position in a Canadian-listed gold royalty firm where I’m on the board and chair of the executive committee. The takeaway here is I have a lot of very high-risk investments that are paying big for me right now.