Were you surprised?

The financial markets plunged last week, the Euro Zone is on the brink of financial Armageddon, and the country of Greece is in the middle of civil unrest with riots, looting, and yes even killings. Wall St. witnessed a historic 1 day plunge in the Dow Industrials of just under 1000 points. It is estimated in the 15 minutes of free fall that 1 Trillion dollars of wealth had evaporated.

Everyone and anyone has an opinion for why this happened in the markets. You’ll hear it was a glitch, you’ll hear someone entered the wrong trade as the cause, some are even contemplating a cyber threat. It’s unclear which might be correct, or if a correct explanation will ever be given or found. What does matter will be how you react to the obvious, ” We’re not in Kansas anymore!” and all the so-called “experts” want you to believe that you still are. Once again, did they see last week coming, or the crisis overseas, and how that would impact everyone and everything? Once again, NO!

Here are a few excerpts from my column in Dec. 2009  that I titled “Forecasts and Predictions in 2010. ”

“I believe 2010 will be in direct contrast of 2009, as 2009 was to 2008. There has been both subtle and glaring changes in everything from what your personal choices will be, to the choices you’ll be looking at in business. Everything is in flux, everything is different, and nothing, and I mean nothing can be taken for granted. The rules of the older paradigms are no longer valid, and in places where there was the illusion of rules, trust me there gone.”

“Many are forecasting that 2010 will be a return to the norm, and will be a meandering path that will bring us back to the days of just 2 years ago. I am of the exact opposite view, and still contend that not only will upheaval be the norm, but the financial crisis of 2009 will pale in comparison to 2010.”

” If the dollar gets above 77….It will rally  for months and catch most by surprise.”

“In Dec. Greece, Spain, and Dubai rocked the financial markets. Italy is in trouble and some in the Euro Zone are calling for financial reform, I believe this to be the beginning of a much more serious nature.”

“The Euro I believe will fall apart. As the economy in different countries get worse…Finger pointing will be all the rage in Europe..and Blame for struggling on others will be the new parlor game of the EU. It’s not just our economy that will be in trouble…but the world as a whole.”

As I’ve said before, Take nothing for granted, and do whatever you can to stay on the safe side. Risk is one thing, but not understanding the risks will  not only be risky business, but could spell the difference between prosperity or poverty.

Don’t get surprised.