In peace, prepare for wars. In calm, prepare for storms.

In 1994, when the world was awash in optimism and military funding was in decline, I read a small book, “The Transformation of War”, and its relatively radical predictions. At the time I wrote a newsletter to my investment advising clients suggesting that the “peace dividend” and the “kinder, gentler world” might be illusory. I had no idea how right Martin Van Creveld would be. Now I’m watching the current expansion of China and the rise of even more social anger, and I’m thinking that we need to be emotionally and financially prepared for war in the coming decades, especially since military spending is again┬áso reduced. Historically, we have wars when we are weakest. What does this mean to our portfolios? Stay flexible, stay liquid, keep at least part of our money overseas. At the moment I’m on a campaign to diversify and streamline our portfolios. If there is no storm and there is no war, we’ll thrive even more fully. Here’s hoping and praying.