The Barefoot Investor Scott Pape has shared his thoughts on whether a Global Financial Crisis is on the horizon and issued some blunt advice to Aussies on how to prepare for the worst.
The finance guru revealed it was the ‘number one question’ he was asked by worried Australians prompting him to share a very blunt response in his advice column.
‘After all, banks are going bust around the world, inflation is burning a hole in our wallets, and interest rates are being hiked at the most aggressive rate in years.
‘So, what comes next? Well, the honest answer is … I don’t know,’ he wrote.
He said even though he had no idea about the future, there were measures that could be taken for people to prepare for the worst.
Barefoot Investor Scott Pape (pictured) has shared his thoughts on whether a Global Financial Crisis is on the horizon
‘However, what I can do for you is to suggest three books that will help prepare you for whatever results from the bursting of the biggest global debt bubble in history,’ he wrote.
The first book was written by Benjamin Roth and it is titled, ‘The Great Depression: A Diary’.
‘No, I don’t think we’re heading into a depression,’ Mr Pape wrote.
‘However, this book is the actual diary notes of Benjamin Roth, a small-town lawyer living through a decade of the Great Depression.
‘What makes it a fascinating read is that he’s writing it in real time – he doesn’t know what’s coming next.
‘You probably think of the Depression as bread lines and poverty.
‘However, Roth’s diary notes show that there were plenty of years in which there were huge rallies in the sharemarket, with newspapers chock-full of experts predicting that the worst was over. And then the market would crash again.
‘From the peak, the stock market fell a staggering 89 per cent, and took 25 long years to regain its high,’ Pape explained.
‘Interestingly, Roth started out thinking that stocks were a scam, and that rent-paying property was a sure bet. However, he came out of the great depression believing the exact opposite.
‘And if that 89 per cent plunge has your head spinning, you really need to read the next book.’
The second book is written by Mike Kemp and titled, ‘The Ulysses Contract: How to Never Worry About the Share Market Again’.
‘So this book has just been release and I wrote the foreword,’ Mr Pape wrote.
The finance guru revealed it was the ‘number one question’ he was asked by worried Australians prompting him to share a very blunt response in his advice column (stock image)
‘Yet I did it for a very good reason: the author, Mike Kemp, is the man I turn to for investing advice.
‘Mike was on the floor of the Stock Exchange the day of the 1987 crash, and over four decades of investing he’s not only become a very wealthy man, he’s done it while totally ignoring day-to-day share market fluctuations.’
‘The main aim of this book is to show you how to never worry about the share market again.
‘Really. He does that by doing a deep dive into economic history, backing it up with sound logic, and then, for the crescendo, encouraging the reader to enter into a weirdly effective,’ Mr Pape explained.
The third book is written by Mr Pape and is titled, ‘The Barefoot Investor’.
‘Okay, so this is totally shameless … however, I really believe it,’ Mr Pape wrote.
‘My book is written for times like this. When you think you’re lost – and you’re not sure which way to go – follow the Barefoot Steps to safety.’
Mr Pape said there were several key points readers could take home if they read his book.
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‘You can’t control what RBA boss Phil (high) Lowe does, or what the economy does, or what your boss does,’ he wrote.
‘However, the fact is, you have more control than you think.
‘So, instead of fretting, focus on the things that you can control.
‘There are things you can do right now – tonight – that will put money in your pocket, boost your confidence and set you off on a totally different path.
‘All you need is a bottle of wine and your phone … and a few good books.’
