Surviving an Economic Meltdown
We are currently going through a reset of the world’s standards of living which was created by massive consumer debt, then fueled by a pandemic that brought the world to a standstill, resulting in massive economic government relief a massive conflict in Europe, and now on the brink of global food shortages. Although this description looks bleak, we need to fully understand the impact politics has on inflation and how we can protect ourselves from it to maintain our current standard of living. It’s no news to anyone that our counties currency has less purchasing power today than it did a year ago. Inflation has eroded this and we are all feeling the pinch.
During these times it’s important to evaluate our equity holdings and adjust to become more defensive. We know that interest rates are rising, but the key is how high will they go and can we survive the storm and prosper for years to come.
The first step is to understand our spending habits, take inventory of all your expenses and do it Monthly as prices are rising monthly but our incomes are stagnant. After we fully understand our spending, then check our household income, the key is to have 10% more income than expenses. In the event we are in a negative situation, our expenses exceed our income, then we need to start adjusting wherever it takes to get aligned.
After we are aligned and have an excess of 10% income vs expenses then set up a separate savings account to park this money. Once we have a few hundred dollars saved, it’s time to start putting this to work for us to help fight inflation. A few areas that I have invested in which have done well in these times are Banks, Oil Producing Companies, Gold and Silver ETFs, and Commodity ETF such as wheat, corn, sugar, etc.
These investments helped EVAULM stay profitable in 2022 as many of our peers are losing money due to a deterioration in world economic conditions. At the current inflation rates, our standard of living may reset back to the 1950s.
EVAULM is a software-based company that uses its proprietary EVM software to value investments based on underlying value assets. EVAULM is extremely diversified in Canadian Banks, Global Equities, Currencies, Commodities, and Crypto Currencies. Our investments have returned an average of 14% constantly. To learn more about our business, please go to www.evaulm.com