You currently don't have to ask too many Americans about economic conditions in order to get the impression that at least here at home a majority of people sense that economic upheaval is quite underway. The word recession is becoming a bit too commonplace for my taste and I have come across more than a couple references to "the coming pandemic." I myself wouldn't go so far as to predict widespread economic collapse, but I have called the current economic environment a "realignment" and I hold with that assessment.

In light of our volatile economic times I thought it might be a good thing to do a quick piece about risk assessment. I have suggested that now is the time to cut risk to the bone; I still hold to that. The theory is that the greater risk you take the more you should be rewarded for taking that risk. My position is that currently our high risk economic environment will not, except in a few scattered cases, provide adequate return for the risks involved. In my opinion the risk curve is temporarily broken and I suggest holding the bulk of your money away from high risk play.

Right now I suggest keeping the bulk of your free investment dollars (perhaps 85%) in short-term, low-risk, prospects. The other 15% to 20% I would break into three or four segments and shop hard for those few real wild opportunities that absolutely are showing up. Once again I say that day trading currently should be reserved for clairvoyants and the hopeless stress junkies. I'm not saying that you should pull out of well-thought-out securities choices that you have made over the last year. What I'm telling you is to be seriously conservative with new investments for the year going forward.

Currently my personal investment strategy is simple and double edged. This year has seen deep reductions in my debt load and discretionary spending has been mainly focused toward increasing household income. I still maintain that debt reduction is your single most important economic weapon at this time, and I encourage you to find the ways to get that done.