Crisis Cycle Investing

The Power of Dividend Portfolios
DC, Cape Town, Italy and London

Last year I wrote a series of letters reviewing different ideas of repeatable cycles in history. All four authors I reviewed, and your humble analyst, all foresee a major crisis/upheaval coming around the end of this decade.

However, we don’t know what the crisis will actually look like. Most of the theories I reviewed see war as a possibility. Not to mention the brewing government debt crisis that will create its own dynamics. We really don't know how this will turn out. Who is going to be in charge politically? What compromises will have to be made in the midst of crisis and how will they affect our lives and portfolios?

A critical question is how do we get as much buying power as possible from the beginning of the crisis through to the other side? Part of the answer is Warren Buffett’s admonition to never bet against America. Better to do as he does, investing in specific parts of America.

I said earlier this year I was transferring my portfolio management and partnership to an independent investment advisor firm called The Bahnsen Group founded by David Bahnsen. I have known David personally for well over a decade and knew his father (brilliant theologian Greg Bahnsen), even publishing some of his books. David and I met on the set of CNBC’s Fast Money in 2010 and discovered that personal connection. Our friendship has since developed into a very close one.