If you’re a long term reader of this blog, you may be aware that I’m anti-investment. It’s not so much that I’m opposed to the concept, but I do not believe any of the typical investments in the first world (roughly: stocks, investment grade bonds and real estate) are likely to fare well over the next decade or three. If you haven’t read the linked article above, I suggest you do so – the rest of what I’m going to say here won’t make much sense if you haven’t. Similarly, you need to understand how I use the terms “investing” and “speculating”, since there is some diversity in how they’re used and we need to be on the same page.
Now, I’m well aware that the majority of people reading this blog do not share my negative opinion on investment or have never really considered the subject. That’s OK. I’m not necessarily trying to convince you. I just want to expose you to a different way of thinking about your long term financial security – one that is not dependent on the end-game performance of any financial instrument or macroeconomic factor. Continue reading