The art of financial warfare: How to beat the system

Investing within a kleptocracy:

Most investors who live under they governance of North America and Europe are often beaten with the stick thievery by the kleptocrats who make all the rules. I liken it to an imaginary card game which one must continuously play with the devil; where evil is in control of the table, changing the rules on every turn and just when the underdog thinks he or she has made gains the game changes and as always, it changes to the detriment of the underdog. I still believe that an ordinary individual can at the very least, give the devil a bloody nose.

In order to create individual wealth one must start looking at the system as a financial battlefield where your only hope is to apply a form of guerrilla warfare strategy, a simple, easy to follow, consistent approach. Investing small scale, slightly unorthodox and most definitely unconventional, by thinking this way you should do better in the long run.

Tactics like deception and dumbing down starts early on the battlefield, firstly within the educational system. Overall, the message from the so called teachers, who have mostly gone to school and then gone back to school without doing anything else, tell you- “do as you’re told, pass you exams and get a job.” (So you can feed the economy and be taxed to death and taxed after death) critical thinking is usually discouraged and seen as problematic. We’ve all gone and are going through this, some are forever brainwashed, that doesn’t have to be all of us though.

Investing non traditionally: (unorthodox in nature)

Through the modern ages most investors have saved within in a traditional savings account, along side a pension or investment account. This usually consists of a stock and bond 60/40 split.

Within recent years things have changed so dramatically and have become so much more malignant that clearly, this strategy no longer works as well as it once did. Inflation throughout the Western world has reached threatening levels which in turn erodes savings. Bond yields are no longer looking attractive, stocks however (depending on the stock or group of stocks) are more so- even though they seem overpriced. Allocating too much of a large portion would be applying too much risk, at the very least you still need some money in that space. Over time stocks tend to outperform most other assets.

The unorthodox portfolio example:

• Bitcoin-10%

• Gold-20%

• Dividend paying Stocks-50%

• Cash ready for allocation- 20%

Notes:

Bitcoin is easy to get started with, a great strategy for small investors would be to invest $1 per day or $30 per month. I recommend crypto.com

Gold investments should be physical however, smaller investors can start with a gold ETF in a tax sheltered account. When a sizeable amount has been built up, units of the ETF should be sold and the cash should be used to purchase physical coins. (Uk investors should purchase sovereigns) capital gains tax on bullion coins varies from country to country, check the with correct authorities before buying.

Dividend stocks should consist of reputable companies from the S&P aristocratic list. There’s plenty of information on this list online. investopedia.com has some very valuable easy to understand information relating to this index. For smaller investors, start with small increments (buying fractional) within an tax efficient account. Remember to reinvest those dividends.

Cash can be held in an easy access account, do not lock it away, you never know when a bargain may arise.

Small instalments vs a lump sum:

Generally starting with a lump sum and continuing to invest with affordable instalments would net you larger gains. Obviously this isn’t possible for all so if one must start from zero than so be it. There’s an advantage to the little and often approach- if there’s a global downturn across most assets.