While the US presidential race has devolved into a somewhat awkward version of reality TV, it is only a mere distraction. The big story is the “social mood swing” that is sweeping across the Western hemisphere. Such social mood changes have proven to be a precursor of many crises. Now is the time to plan ahead and to protect your assets!
Trump or Clinton?
- What are the implications?
- Should I adjust my investment strategy now or later?
- Will a Trump presidency trigger an instant sell-off in financial markets?
- Will his “protectionist” trade policies destroy the global economy?
- Will Clinton’s presidency mean higher taxes?
- Will she lead us into World War III?
Everybody, and I mean everybody, is tangled up in animated discussions over the US presidential election. I don’t want to downplay the importance of electing the next President of the United States, however the US presidential campaign is NOT the main story. We need to consider a much more critical trend that is present throughout the Western world, a real tectonic shift in our societies.
Social Mood Swings Indicate Major Trend Changes!
We’re faced with challenges and uncertainties in politics, the global economy, and financial markets. There are huge debts, too many regulations, and near-omnipresent governmental intrusions, governing every aspect of an individual’s life. Western governments are increasingly run by centralist elitists and career politicians bought and paid for by large corporations, who all think they know what is best for “the man in the street.”
The people in power might genuinely intend to help the disadvantaged and the disenfranchised. However, they casually dismiss the opinions and choices of anyone without a top college degree or a high-ranking position in politics, science, business or education. While publicly sing the praises of democracy, they don’t really believe in it. After all, their thinking goes, how could the common man or woman really know how to vote on issues far “above their paygrade”? This growing distance between policymakers and grass roots realities has led to a broad and international “social mood swing.”
This mood swing is clearly apparent and has been widely discussed. It can be detected in the context of the US presidential race and Donald Trump’s formidable movement, filling stadiums all over America. And it can be seen in Europe, where the Brussels elite is desperately trying to keep the Union together and avoid another exit. Brexit was only the beginning. Trump, Hungary’s Orban, the German AfD, the Catalan movement, the likes of Geert Wilders and Marine Le Pen – they are all summarily dismissed as fanatic and extremist outliers by the elite and mainstream media. And yet, the ranks of their supporters keep swelling.
The people vs. the status quo
These popular movements are questioning and eroding the entrenched political and institutional structures, and the establishment’s response is to attribute their success to the “stupidity of those irredeemable masses.” It is precisely this unbelievable level of conceit that further fuels the people’s need for change, as the average voter can no longer trust that his or her interests will be faithfully represented by those in power.
This shift towards decentralization and mistrust of governments is further galvanized by the internet and rapid technological advances that have resulted in business models like Uber, Airbnb or the French BlaBlaCar. Don’t laugh – BlaBlaCar is not a joke – there are more people using that long-distance travel service today than people flying on airlines like United! These business models are based on a concept of self-regulation and of the elimination of the need for external controls. They provide a proof of concept: decentralized, self-regulating platforms can indeed replace central regulation and government enforced protection. These cases show the public that their trust is best placed in private businesses and individuals who earn it, whose interests are aligned with their clients’, who can be held accountable and who are kept in check through competition.
Meanwhile, trust is what ultimately legitimized the coercive powers of central government – the military, police, the tax authorities and the lawmakers. And now clearly, people have started questioning whether their trust has been misplaced– across the spectrum of political factions.
It is not the brilliance of Donald Trump or Bernie Sanders that moves the masses and stirs our emotions. They are merely the messengers, and it is their message that has pushed the right buttons at the right time. People in all Western societies are unhappy with the status quo; they want change and they want it now.
Your Plan B: Jurisdictional Diversification
Don’t let the noise about Clinton’s e-mails or Trump’s groping divert you from the main story: Relevant changes are underway that can directly impact your life. As Pericles said (430 B.C.), “Just because you do not take an interest in politics doesn’t mean politics won’t take an interest in you.”
No one knows how it will all turn out. But there is one thing we do know: social mood swings are at the core of major economic trend changes. They are generally preceded by a lot of precursory tensions, much like the ones we are seeing now – social, political, ideological. These are real, structural threats, much more relevant than all the day-to-day market news and headlines covered by the mainstream media.
Irrespective of who wins the presidency think about how to effectively protect and prudently grow your wealth in today’s choppy financial waters. These uncertain times we live in require drastic and “out-of-the-box” solutions. The political and financial crises engulfing America and Europe now dictate that we do more than talk about “going offshore.”
Regardless of where you live, when you recognize the typical Orwellian pattern of arbitrary legislation, growing tax burdens, and aggressive regulations that become increasingly restrictive to individual and financial sovereignty, you know that it is high time for JURISDICTIONAL DIVERSIFICATION in your wealth management planning.
While many investors might be familiar with the INTERNATIONAL DIVERSIFICATION, namely creating an investment portfolio with internationally diversified assets and currencies, this is not what we are referring to here. Jurisdictional diversification means that you place part of your wealth outside of the jurisdiction you live in.
Why move your wealth in a time when the regulators in Germany, Great Britain and the United States are aggressively targeting so-called “tax havens” and “offshore financial centers”? Based on the coverage of this topic in the media, investors might easily conclude that investing overseas is illegal. Be assured, INVESTING OFFSHORE IS NOT ILLEGAL…at least not yet.
What is illegal is to invest overseas and not remain compliant with the rules of your tax domicile or residence. These rules dictate the reporting of your assets held overseas, as well as the taxes due on the gains and income from those assets. The purpose of jurisdictional diversification is not, and should not be, to hide your assets or to elude the laws of your home country.
Instead, the primary aim is to place your assets where the rule of law still exists and where the government does not control the people, but the people control the government.
Four Tips on Effective Jurisdictional Diversification
The best strategies for implementing an international wealth management plan will differ based on where you live. However, there are a few key points that should be considered.
- COMPLY with the rules of your home country. You may wish to transfer your assets back home when you need them.
- Employ SOLID AND TIME-TESTED STRUCTURES whose set-up and maintenance are not overly complicated. These structures should allow for long-term asset protection, safety, and investment flexibility.
- Chose SOLID AND TIME-TESTED INSTITUTIONS AND JURISDICTIONS that ensure your assets will be held safely and professionally.
- Remember that A GOOD TIME FOR INTERNATIONAL WEALTH PLANNING IS WHILE YOUR PORTFOLIO IS DOWN.
- Social mood swing is sweeping the western world: A historic indicator that huge economic trend changes are imminent.
- This mood change is challenging the “status quo.” The “status quo” will respond with additional controls, taxes, and debt.
- Your wealth may be safer in a country other than your residence – think about Jurisdictional Diversification.