The Coming Storm: The Optimizer and the 2030s Great Depression
As Brian and Alan Beaulieu recently discussed in their 2030s Great Depression webinar, many factors including demographic shifts, rising healthcare costs, government spending, and inflation are converging to create an economic decline that could be twice as severe and longer-lasting than the 2008-2009 Great Recession. However, amidst these dark clouds looms a silver lining: a wealth-creating opportunity for those who are prepared.
The economic forecast painted by Brian and Alan Beaulieu for the upcoming decade is indeed grim. An aging global workforce, escalating healthcare expenditures, and ballooning government debt are key contributors to this impending economic downturn. One of the most significant drivers is the dwindling population and workforce, particularly in countries like China, Japan, and several European nations. As Alan pointed out, China has already crossed the "point of no return," setting the stage for prolonged economic challenges.
Additionally, the strains caused by the retiring Baby Boomer generation are putting immense pressure on government entitlement programs, with Social Security, Medicare, and Medicaid bearing the brunt. Furthermore, the combination of increased government spending and the Federal Reserve's willingness to finance burgeoning national debt will fuel inflationary pressures that will ripple through the economy.
Despite the bleak economic outlook, there is opportunity for growing wealth during this time. The Optimizer, a collaborative process involving both Bellwether Wealth and Brian and Alan Beaulieu, is the cornerstone of our strategy to weather the approaching storm. This intricate partnership allows for meticulous data analysis and modeling to inform investment decisions, ensuring our clients' assets are strategically allocated.
Leading up to the impending Depression, there are still projected periods of growth. Just recently, we shifted gears towards a cyclical strategy, fully acknowledging the possibility of a switch to a defensive strategy later due to the anticipated 2024 recession. However, this phase is seen as an opportunity for potential growth, and our adjusted allocation mirrors this perspective.
As we get close to 2030 our strategy will shift to international government bonds as potential safe havens. Bellwether Wealth, Brian, and Alan will consider many factors when selecting international government bonds such as the country’s population growth, workforce size, government debt ratios, revenue-to-debt ratios, and overall government stability. Countries like Canada, Australia, Sweden, and Switzerland currently stand out as promising havens.
The 2030s Great Depression presents both challenges and opportunities for investors. The Optimizer offers a promising approach to weathering the storm. By leveraging data, insightful analysis, and forward-thinking investment decisions, Bellwether Wealth aims to help clients navigate the uncertainties and capitalize on the wealth-creating opportunities that lie ahead.
Clark