And welcome to another edition of the Chicks on the Right podcast where we talk
to our BFF and sponsor of the show, Zach Abraham, the chief investment
officer of Bulwart Capital Management. Today, as we're recording this, it is
February twenty second, and the world exploded because cell networks went down. People's
phones were down, people were freaking out, there were websites affected. It
was mayhem. Hopefully by the time people are listening and watching this, listening
to and watching this, that is over and everything is restored. But this
is the kind of stuff that keeps me literally up at night. What should
people be thinking about in terms of protecting their finances and their wealth and their
money in times of emergencies like this, when a grid goes down, the
internet goes down, or whatever go Yeah, so great question. This will
sound a little self serving, but I don't mean it that way because we're
again we're not the only people that do this. But these questions feed right
into the reason we manage money the way we do. We live in a
very different world with very different threats and with governments doing substantially different things,
and when you look at a stock market and an economy, like we have
today that is built on so much artificial stuff like printed money. It will
probably continue to go up, but you always have the risk of things going
right. You have the risk of reality returning right for lack of a better
term. And the funny thing about reality is it can show up anytime,
and so you need to have constant forms of protection in your portfolio to protect
you because if you get blacked out from your portfolio for a week and you're
the one trying to manage it and you open it back up and it's down
sixty five or seventy percent, it is what it is, right. There's
really no way to and I'm not saying that that's going to happen. What
I'm saying is it is a different world, and I think we got to
manage money differently so when those things happen, So I think it's a good
reason to have active management, right, somebody else actually actively managing your money.
And then the other side of it is, you know, I think
that we all I am not a fan of hoarding cash. I am not
a fan of hoarding gold. I ask that, Yeah, if you have
that fear, like I've always said, stock up can good and ammunition,
okay, and probably cigarettes and booze because that will do you better in an
economic collapse than the cast you know. Yeah, people look at these things
the wrong way. People will use cash to buy the things you have,
right. They need food, they need fuel, they need water, they
don't need money. So I think having you know, a couple of thousand
in the in the in the in the house is a good idea. Having
some gold on and in the house is a good idea. And because you
said it, meaning when the grid went down in nineteen forty five, we
could walk in the bank, they'd walk back in the safe, bring out
a stack of cash that's ours, and go here you are sir, right,
Yeah, things digital now, Yeah, that was my question, like
what if the grid actually goes down? What do we need to have cash
on hand? Like what do you think should happen? What should we be
doing to protect ourselves from a financial standpoint? And cash is not the answer,
right, Like you're saying boos and cigarettes. I mean I get it,
I totally get it. Yeah, And it's all depending on how long
these things last, right, I mean if it's now for three days,
obviously you know we're not going to turn into the lord of the flies,
and everybody's going to be at each other's throats. Right, well, I
will absolutely lord of the flies in like ten minutes, She'll be lord of
the flies. But what if it turns into like three months, If it
turns into three months, six months, I mean, you have an incredible
point there. Well, we're all gonna die. My god, Mom got
to such an extremest. But seriously, Zach, like, you have a
great point because cash is useless in those situations. When people don't give a
crap about cash, they give a crap about the things, So they give
a crap about food and Ammo and luxury items and stuff like that that they
wantn't normally do they want to have because they can't get it. That's that's
a great point. The other scary thing about some of these threats that we're
posting right now is the unique environment we're in, meaning we have experienced things
in the last four to five years that no person in the history of mankind
has witness, which is, you know, the complete shutdown of the world's
largest economy and its stock market's still finishing up sixteen percent on the same day,
Meaning people are more anesthetized to risk than ever before. Right. If
you ask them you need protection your portfolio, they're like, did you see
the stock market? And you're like, yes, that's why you need protection.
Right. I wasn't advocating for protection in two thousand and nine, right,
yeah, you need protection for things falling. And it's just the way
so people. And that's one of the things it worries you is that when
you have had so many of these risks, when government is just papered over
it, right, papered over it, you condition people to turn risk off
in their minds, so they turn it off. Well, like you said,
the FED can't paper over a power grid going down, right, right,
Yeah, they allowed a power grid. Right, So there are these
risks, whether they play out or not, I'm not saying they are.
But where this create h fragility in a system is that, you know,
That's why we're saying we always believe you should have you know, pull up
that scenario where the grid goes down. It's gonna rock the economy and by
the time you get access, you could be down sixty five percent. This
is exactly why we always have some form of insurance, not always, but
in times like this in our client's portfolio. Because if that happened all the
market today, I can't tell you where we'd be, but based off things
we have in our client's portfolios, they wouldn't be down anywhere close to sixty
five percent. Right, So this is and I know this is the kind
of stuff that you're covering too on your show, your daily show and all
of that. And where can people find that and find you and find out
more Know your Risk radio podcasts, not behind a paywall, Bowercapitalmanagement dot com,
all of the We're easy to find. We're on Apple Podcasts, Spotify,
all those different places, and yeah, pretty easy. Fine, per
get toilet paper and hambo. People do have somebody, Have somebody manage your
money, like Zach. There you go, Thank you well