The Four Horsemen of the Investor’s Apocalypse by Robert J. Klosterman, CFP, is an excellent resource and guidebook book designed to give advice and aid all investors, as it instructs investors on ways to handle four of the deadliest hindrances to their financial goals of finding success in managing their assets, preserving wealth and maintaining the growth of their portfolios over time. The book, subtitled “The Four Evils That Will Crush Your Portfolio, and How to Fight Them,” covers in depth four of the hindrances, or “horsemen,” that have most often caused disaster to happen on an apocalyptic level to the presumably most carefully designed portfolios of investors.
The “four horsemen” that Klosterman writes about in The Four Horsemen of the Investor’s Apocalypse are Inflation, Volatility, Groupthink, and Global Displacements and Transformations. Each of these four can be deadly to investors’ portfolios. When they act in tandem with each other, the combined effects can present a potential Doomsday scenario to investors.
Klosterman goes into great detail in The Four Horsemen of the Investor’s Apocalypse about how the four horsemen he discusses can spell a gloomy forecast to plans that might otherwise seem to be reasonably sound investment strategies, if the four horsemen did not interfere in them. Klosterman not only writes about the dangers that the four horsemen can pose, but he also offers suggestions about how to stave off the worst of the destructive tendencies they can have on the portfolios of investors. ReadingThe Four Horsemen of the Investor’s Apocalypse can enable investors to better deal with the potential problems that the four horsemen can present, without becoming a victim to their deceptive and evil influences. Klosterman’s book helps investors remove the blinders from their eyes and to see more clearly the myriads of investment opportunities that they have available to them.
Klosterman relates in short, easy-to-understand chapters financial anecdotes, and he provides diagrams and spreadsheets which allow the readers of The Four Horsemen of the Investor’s Apocalypse access to his treasury of experience and knowledge as a financial planner. The author’s book is a good reference and a guide to inform potential investors about why investment strategies might seem great on the surface, but might not be as sound as they might think, when more closely examined.
The Four Horsemen of the Investor’s Apocalypse Klosterman warns, is not intended for anyone who is interested in “get rich quick” schemes. It is for people who already have a degree of wealth and who want to preserve it and grow their standard of living. It is designed, as Klosterman puts it, to help reach, attain, and maintain a certain “standard of living.” The Four Horsemen of the Investor’s Apocalypse is also meant to aid investors in finding the right types of financial planners to help them do this, and it goes into key things that investors should be wary of as they attempt to achieve their goals.
Right from the very beginning of The Four Horsemen of the Investor’s Apocalypse, with a chapter titled “Rules of Thumb and Other Urban Myths,” Klosterman relates certain beliefs that many investors have and why they have them. He then explains why they should not always be believed. His guidebook does not present an easy path to investment success, though he writes that “most of us will take the easy way,” when given a choice; but, for people who have been investing for the long term over several years, wise investors have become aware that the supposed “easy” way or answer often “has hidden costs and consequences.”
In The Four Horsemen of the Investor’s Apocalypse, one of the four horsemen that Klosterman discusses is Inflation. He relates how it can sometimes lead to s potentially hazardous way of thinking, involving what has come to be called a “Rule of Thumb” when investing. The “Rule of Thumb” is that the percentage that a person has invested in stocks should be 100 – the person’s Age = Percentage in Stocks. Klosterman writes that a major problem of this 100 -Age rule is that it “ignores the impact of inflation over time.” This particular “Rule of Thumb” can leave investors with no protection against the first of the horsemen, Inflation.
The last thing that investors want when it comes to their carefully-nurtured assests is to have their attempts at continued financial success waylaid by one or more of the four horsemen Klosterman discusses in The Four Horsemen of the Investor’s Apocalypse. It is a fantastic guide and resource to building the awareness of investors about each of the four horsemen. The author goes into methods of defeating each of the horsemen and maintaining and growing the wealth of investors into even bigger and more successful portfolios. The guidebook is a Must Read for anyone who desires to avoid, or at least to mitigate, the many disastrous pitfalls that investors face, and making sure that the four horsemen do not bring a day of apocalypse to their investment portfolios..
Written and Edited By Douglas Cobb
The Four Horsemen of the Investor’s Apocalypse