Diversifying Your Portfolio As The World’s Going Through Changes
Record housing prices, record equity in real estate, collapsed cryptocurrency market, inflation at 40-year highs, interest rates up, stock markets down…
And that’s just in the United States.
We all expected the pandemic to wreak havoc on the economy… and it did in some ways, but, more importantly, it shifted people’s perspectives. The rebound effect of the global economy opening back up and the trillions of dollars that governments poured into their economies are catching up with us.
For many, coming down from the high created over the last couple of years will be hard to take. One real estate agent in Mexico that I spoke with recently said 2021 was his agency’s best year in his 25 years in the business. It was a good year for all the freshman agents in the area as well. However, he’s seen downturns before. They haven’t. As things cool down, he expects the ranks of agents in his area that have swelled over the last two years to disappear by the end of the year.
Not that he expects sales to fall off a cliff, but he does expect them to go back to normal. Normal means few agents are needed. He also expects the downturn to be less painful and less dramatic than the 2008 global crisis.
The fundamentals are different now from 2008… at least in the real estate markets. Record equity in the United States—much of it thanks to skyrocketing prices across the country—will leave few if any people upside down on their mortgages. Prices along with higher interest rates will also leave many unable to get onto the property ladder.
Those people might just seek better options overseas, whether it’s for the cost of living in general or to find affordable housing. The world is moving around more now than ever thanks to the work-from-home options available to some. You don’t necessarily need to be retired or self-employed anymore to decide to relocate to another country.
That’s going to mean more competition for those of us who have been living an international life for years (decades in my case) already.
You need to prepare yourself for the newbies to be bidding up not only real estate prices, but prices for services and goods as well… at least until the world rebalances itself and many of them retreat back to where they came from.
Factor in to all this the fact that the U.S. dollar hasn’t been this strong in 10 years… at least against the euro and against the pound since the beginning of the pandemic.
What happened to the demise of the U.S. dollar?
The dollar remains the global currency for various reasons and is not going to go to zero any time soon. It will likely get weaker against the euro and pound again though, which means it makes sense to move some of your dollars into those currencies right now… if you’re planning on spending time or investing in places that use those currencies. As long-time readers know, my personal plan is to split my time between several countries, some of which are in the Eurozone. Therefore, building up euro-generating investments and holding euro assets have to be part of my long-term plan. I’m still earning most of my income in U.S. dollars so with the euro almost at parity, I’m buying as many euros as I can.
But Europe isn’t the only place in the world where you could take advantage of a currency discount…
If you are in North America (or Europe) as you read this, you are much wealthier in Australia, Brazil, Chile, Colombia, Mexico, New Zealand, and the U.K…
While inflation runs rampant back home, the euro and the U.S. and Canadian dollars are surging against local currencies all over the world. So much so that you now have over 50% more buying power in some places than you did just a few years back. Thanks to this “currency discount,” an upscale dinner that cost you US$100 in, say, Colombia, a few years back is now the equivalent of just US$64… I meet annually with my trusted global team of experts to discuss the best prospects for the coming year, and this year there’s more opportunity than ever…
If these diversification ideas are of interest to you, come spend a few days with me and my colleagues in my favorite tax haven. I can virtually guarantee you’ll leave smarter, wealthier, and more confident than you are now. You’ll also arrive home with more freedom than you’ve ever had.
I’m going to teach you how to take back control…
How to protect yourself from lawsuits and asset seizures…
How to shield yourself from inflation, market corrections, and social unrest…
How to keep more of your money from ending up with the taxman every year…
And, perhaps most important, I’m going to show you how to escape all the chaos back home and in the rest of the world.
In short, when you join me in Panama this fall, we’re going to work to chart your own course for maximum protection and profit.LINK
P.S. Your path to a wealthier and more secure life starts at a private event limited to only 100 readers. I’ll have all my top banking, tax, residency, citizenship, asset-protection, business, and offshore investing experts on hand.
These are heavy-hitters… the people I go to for help…
They’re pros who know what they’re talking about and who are keen to help you thrive in the midst of whatever messes the world gets itself into.
We’re going to share our insights and insider expertise on everything you need to know, including:
- Time-tested and current strategies for global investing that are both profitable and private—as well as the best opportunities available in the world right now in each of these areas…
- How to take advantage of the world’s best banking havens—and find out which ones are best suited to your needs (and will accept American clients)…
- Structures that could make it impossible for anyone in the world to touch your assets (again, all 100% legal)…
- The big tax issues to address when investing, living, and doing business abroad (including issues such as the “FEIE”, tax residence, 1031 like-kind exchanges, low-tax and zero-tax jurisdictions)…
- The benefits of incorporating and doing business in a tax haven (as well as introductions to the best tax havens in the world today)…
- The top current options worldwide for obtaining foreign residency or a second passport… and the important reasons why you might want one in the first place…
- And much more…
At my 2022 Offshore Wealth Summit, you’ll not only learn the methods and strategies to protect and build your wealth… We’ll also help you build your own personal plan, tailored to your specific needs, lifestyle, agendas, and objectives.
Lief Simon
Editor, Offshore Living Letter
