PROTECTION AND WEALTH BUILDING STRATEGIES 203warnings — the signposts. When you see the signposts, then
you can begin to know which way you’re going.
Here’s how I explain it to investors. I live in the New York
area and it just so happens that if you drive to Boston all
the roadside restaurants are McDonald’s. And if you drive to
Philadelphia, all the roadside restaurants are Burger King. So,
if you blindfold me, put me in a car and don’t tell me which
way I’m going but you tell me there’s a Burger King, I know I’m
not going to Boston.
In other words, the Burger Kings and the McDonalds are
my signposts.
The art of applying this technique to your investments
requires, first of all, getting the possible outcomes correct.
Then, instead of just assigning arbitrary probabilities to them,
figure out the helpful indications and warnings. Then watch
the data, watch geopolitical developments, watch strategic
developments and when you see a particular signpost you
know you’re on your way.
It’s an intelligence community technique that I’ve brought
over to capital markets. Believe me, it works. I have years of
experience using it. Now, you can use it too.
■ Preserve Your Wealth in the Face
of Financial War
During the Cold War, the United States had enough nuclear
missiles to destroy Russia and its economy and Russia had
enough missiles to do the same to the United States.
Neither adversary used those missiles and the leaders were
quite careful to avoid escalations that might lead in that direc-
tion. Proxy wars were fought in places like Vietnam, the Congo
and Afghanistan, but direct confrontation between the United
States and Russia was never allowed to come to a head.
The reason was that no matter how devastating a nuclear “first