TAGS: #brexit
It started with the Brexit vote in the UK, and then Trump's victory in the US. These two votes sent shock waves through the world, as none of the political elite could ever have imagined such results could possibly happen. But they did happen, and there are plenty more shock waves to come. Over the next couple of years we will likely see many more 'black swan' events, promoting pro-independence, and even outright separatism movements. The curtain is being rolled back further, exposing more of the establishment status quo.
First the UK, then the US, and now the next big 'shocks' will come from Europe, We have just spent the past four decades living in an ' age of entitlement ', with governments offering handouts every election, treating its voters like heroin addicts, their motto being " just promise them more stuff, and they will be happy. " It did not matter which party, they all did the same thing. The problem was they did not have the money to pay for all these freebies, and now it's the day of reckoning.
Those in charge have run global economies into the ground, initiating monetary policies that included creating trillions of dollars out of thin air, to even coercing negative interest rates onto consumers. They have robbed the seniors of any return on their savings, and have now jeopardized pension funds, which have now incurred massive financing gaps thanks to low rates.
What we have seen in the last year has been quite remarkable, but what's about to happen is going to make the last couple of years seem docile. There are a number of big political events coming in Europe in the next year. The next big date is December 4th, when we have both the Italian referendum on constitutional change, and the Austrian Presidential election. With anti-EU sentiment rising through Europe, either one of these events could be the domino that triggers a contagion, with more dominoes falling. sending an entire continent into a state of terminal socioeconomic collapse.
The European Union is at great risk of unraveling, and the potential financial repercussions are massive. Those Europeans who have converted Euro to US dollars on any Euro rally are in a very good position today. Investors need to understand the big picture on what is coming in the global economy. Once you have the big picture, then devise strategies on how to profit from it.
The number one priority is to protect our wealth. Many lost a fortune in the real estate crash in 2006, and the stock market crash in 2008. We are very concerned that these same people are going to get hit extremely hard in the coming global Bond Market Crash.
You must understand that all markets are connected. When investors in Europe saw rising unemployment, and escalating violence, they did not want to leave all their money in that economy. They looked around and even though the US economy was not growing rapidly, it was growing. They also knew that the US dollar was the world reserve currency, and that the US equity markets were the most liquid in the world. So they started to open US dollar bank accounts, and invest in the US stock markets. Investors from Russia, China, and all over the world are doing the same thing, they are moving their capital out of perceived risky areas, into the perceived safety of the US dollar, North American real estate, and equity markets.
So while we have seen a lot of volatility in the past two years, it is nothing compared to what is coming. We are already starting to see the consequences of negative rates. Bonds are now being sold off. This is happening in government bonds and corporate bonds. This is a major trend change, one that is going to deliver massive losses to many investors.
Things are heating up and you will need to navigate through this fast approaching, massive trend change. It will affect everything in your life: your finances, your currency, your mortgage, and your ability to sleep at night. These changes will hit the currency, equity, precious metal, oil, bond, and real estate markets. If you understand what is coming, and have a concrete plan on how to nimbly maneuver your investments as each phase is triggered, that's good. But if you do not a plan, get help before the coming tsunami of economic changes.
It's your money – take control!