The last time I attempted to warn friends that the U.S. stock market was in for a big decline, due to the declining housing market back in 2007, I was mostly ignored. The fact that I got that call correct has not gained me much credibility though. The reaction of my friends to warnings that an economic depression will start in 2012 is basically for them to ask "when did you start wearing a tin foil hat". I find it frustrating that my warnings to prepare for an economic collapse lead to my being considered a bit of a wacko. Time will tell if I am correct again, but no one reading this post can state that I did not warn them to be prepared for dark times ahead.
It seems remarkable to me that most of my friends have such short memories in regard to how badly their investment portfolios and retirement accounts got crushed by the stock market declines in 2000 and 2007. In both cases the S&P 500 declined by over 45% from peak to trough. I agree with Mark Faber's prediction that those that do not take steps to protect themselves from the coming decline "will be lucky to still have 50% of their wealth in 5 years’ time".
As the year end approaches, and I try to make my case for preparing for an upcoming collapse, it seems like a good opportunity to provide a summary of the best posts from this blog: