You should be owning assets that are going to 0

oped

When managing a portfolio it is 100% sure that a portion of the assets you hold will go to 0, bankurptcy is a fact of life, some of the time, therefore some of your wealth will go to 0 invariably, that is if you are holding a diversified portfolio as advised by basically everyone, yet as Andrew Carnegie [1] expressed so thoughtfully the right strategy might entail to, ‘put all your eggs in one basket and then watch that basket.’

So let’s take the Carlyle example as the best thing and the diversified portfolio as the normal move. We all fall from perfect we put our wealth in different interest basket, some bonds, some stocks, other variation and derivation of financial assets with various names, other stack commodities, coffee, gold, silver, copper, metals, anything really that will be consumed either directly by a consumer or via the use in a factory refinement process.

stocks go to 0 when a company goes bankrupt, commodity go to zero and some aspects of manufacturing or consumer spending gets altered, crypto goes to 0 when people loose faith or when a big actor moves, currencies are another bet people can make, some people own money in different currencies all at once, they then bet for a currency vs another currency at the forex exchange. Currencies as well have been known to have their own problems, when money printing for example get out of hand they plunge very rappidely as the money supply expand leaving in the dust the amounts of consumer goods there is in the market economy. In those case to adapt people starts charging more to retain the amount of consumer goods they can realistically produce. You’re paid more the number gets bigger but you loose out in the end as prices soars to secure the supply of goods. Inevitably to secure the goods of a worker people will be paid more to account, but this process in this example prompted by the money printer meakes it so that wages are running after prices.

But indeed you should be owning cash of your country, to buy stuff at the groceries pay taxes and all the rest, no one will argue that even thought you live in an inflationary environment that you shouldn’t be owning any of your countries cash, some of with will go to 0 you should be owning an asset, here currencies although they will inevitably fall and go to 0.

Expanding on that principle we can now own all sorts of things that have the propencity to go to 0, crypto, stocks, ect..
Finishing here on a positive note this is freeing, it all depends on your evalutation how realistic it is and to read the room, by owning a diversified portfolio as own might say means that maybe your currency will go to 0 and yet you will retain some of the wealth. By putting all your eggs in a basket and watching the basket here for example means, that you would put all your eggs in the currency basket of your country and this is what most people are doing, and then the hardest part keeping eternal vigilance and watching the basket containing all the eggs you worked for.

Thus one can focus his energies more thoughtfully.

[1] – https://quoteinvestigator.com/2017/02/16/eggs/