The Big Drop: How To Grow Your Wealth During the Coming Collapse is a book that was published in 2015 by James Rickards. I first learned about James Rickards while listening to Rich Dad radio. He has some very interesting insights about money and the economy. So I decided to pick up one of his older books and read it. The one that I decided on was The Big Drop and let me tell you from the moment that I picked it up I couldn’t seem to put it down.
I lacked some for sight on this one because I didn’t realize the book would be talking about macroeconomic events so much. Although reading this book at the beginning of 2018 gave me plenty of perspective since it was written with the future in mind.
The Big Drop is looking from a perspective of someone living in the United States but it does so on a macroeconomics level. James Rickards has had the privilege of being a part of some very highly ranked think tanks so he gives some great insight. He analyzes the economic situation that was present in America at the time.
As we all know America has been printing money like crazy since the Great Recession but he breaks it down and explains the implications of this. He looks at the state of the economy and how some signs are pointing us towards deflation while the Federal Reserve is counteracting that by creating inflation. He definitely paints a picture that the US economy is in a very fragile state.
Like I said in the beginning having hindsight has let me know that some of his predictions have not necessarily come true yet while others have.
While he is analyzing the situation in America he does contribute a lot of information about other countries which affect the US economy. He also gives a lot of insight into the workings of the central banks and organizations like the IMF, G20 and some others.
Reading this book has definitely opened my mind up to thinking about economics on a larger scale because every economy in the world is tied into other economies in the world. So it is very possible that the next big crash that we experience here in the US may be caused by something that happened in some far off country.
One thing to keep in mind is that the author is not telling the reader to sell all of their stocks and bonds and to get out of the markets. What he is doing is educating on what money is and how you can continue to grow your wealth regardless of what happens in the economy. One thing he does talk about is how to shore up your portfolio in a deflating environment as well as an inflating environment. He talks about different kinds of investing vehicles like gold/silver, fine art and real estate.
In conclusion, The Big Drop is a great read for anyone in the finance world. I do think that some of the information contained in it should be taken with a grain of salt. It did open up my eyes to the bigger picture and I would definitely recommend it to other readers. I enjoyed the book so much that I am currently reading another book published by James Rickards and look forward to reading all works published by him.
Have you read this book? If so I would love to hear what your opinion is on it!
As always I look forward to reading all of your comments and questions, until then….. happy investing!
-Jason from MoreDividends.com
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