The Economic Time Bomb: How You Can Profit from the Emerging Crises

Shows how our volatile economy may worsen as the federal debt increases, banking problems continue, and the stock-market crash and trade deficit take their toll, and explains how investors can profit

Noted investment guru Browne offers cogent and practical advice on how investors can shield their capital in turbulent economic times. As an added plus, readers are treated to a clear-sighted and direct analysis of the economic issues confronting the U.S. today. Browne convincingly argues that the trade deficit, the stock market crash and America's new status as a debtor nation are all, in reality, "non-problems." Normal economic forces will simply, and nearly painlessly, correct these "imbalances" without the need for hasty and ill-considered government interference, Browne maintains. In fact, he opines, government interference may well detonate the economic time bombs he discusses. Despite his title, Browne does not predict economic catastrophe, but warns that the conditions for one exist. To protect an investor's capital, he has devised a diversified "Permanent Portfolio," counseling investments in gold, bonds and stocks which, in his view, should preserve an investor's capital in any economic climate. The book will interest investors large and small.
Copyright 1988 Reed Business Information, Inc.

Browne wants to help investors preserve their money through what he sees as three impending crises: in the inflation-recession monetary seesaw of the Federal Reserve Board; in federal deficits; and in weakness in the banking system, especially in the savings and loans area. Since these are interrelated, if one fails, they will all explode into an "economic time bomb." Browne's answer to this uncertainty is a "permanent portfolio," aimed at withstanding and making money in any economic climate; it includes 25 percent common stocks, 25 percent gold, 25 percent cash-like investments (such as T-bills), and 25 percent treasury bonds. For those wanting to speculate or play hunches, Browne recommends a parallel "variable portfolio," made up of money that investors can afford to lose. A valuable source for the investing public. Despite its title, Meek's book has nothing to do with the October 1987 stock market crash. His purpose is to help average people manage their finances. He touches on estates and trusts, the importance of disability and life insurance, and how to choose and use a financial consultant, in conjunction with an attorney and a CPA. Common stocks, either owned individually or through mutual funds, are Meek's preferred vehicle of investing. Their long-term success is undeniable, and Meek has some jargon-free and well-written advice on buying them. Unfortunately, he sometimes gets bogged down with too many graphs when explaining his system, which is based on monetary formulas and business cycles. Still, his skeptical eye and understanding of the importance of crowd psychology will not disappoint investors looking for guidance.
- Alex Wenner, Indiana Univ. Libs., Bloomington
Copyright 1989 Reed Business Information, Inc.