Here Comes the Fall… in February!

This article was published in the Escape Artist Weekly Newsletter on February 06, 2018. If you would like to subscribe to the newsletter, please click here.

In case you missed the breaking international news:

The Dow Jones Industrial Average experienced one of the biggest single-day drops in history, down 4.6% (1,175 points) to 24,346.

Here Comes the Fall… in February!

The S&P 500 fell 4.1% to 2,649.

Nasdaq Composite Index ended at 6,967, down 3.8%.

Japan’s Nikkei stock average sank more than 5% in morning trading, after a 2.5% fall one day prior.

Hong Kong’s Hang Seng Index dropped nearly 4%.

Folks, this is significant.

Is this volatility the sign of an upcoming recession? The result of increased risk of rising federal deficit? A needed readjustment?

Perhaps an economy that is overheating and risking major inflation? Hello, interest increase.

What many of us are wondering is if this is the beginning of a troubled U.S. economy, or if this is just a fluke. With varying responses from top economists, it is extremely difficult for people to make sense of what may lie ahead. What is even more perplexing is the acknowledgment and justification of this obvious turbulence with the promise of even brighter times ahead. How long are we going to deny that something big is coming?

It may not be tomorrow, or even next month, but after riding the Dow Jones wave for the past 5 years, don’t you think it would be prudent to cash out on a percentage of your earnings? Put your profit to work in an uncorrelated market, separate from U.S. stocks and bonds. And let the funds that you’re willing to risk ride out the wave until this daunting, dark storm hits.

Here Comes the Fall… in February!

You see this storm coming towards the wave, and you have a few choices. What do you do?

  1. Keep riding the wave with the anticipation that you’re going to keep going up. Just bear in mind Newton’s third law of motion: “What goes up must come down.” And the stock market is not exempt from this law of physics – you don’t have to be Isaac Newton to see that. Consider this option if you have unlimited resources and no financial obligations.
  2. Start swimming to shore. Risk what you’re willing to lose but don’t give up on investing. There are many markets uncorrelated to what is going on in the stock market that the ultra-wealthy have invested in for years. Consider this option if you did well in the stock market and want to reinvest your profits in diversified options. If you don’t want to quit the game yet, take a look at a few considerations under option #3.

Here Comes the Fall… in February!

  1. Summon Air Evac and get the heck out. It may cost you a small sum up-front, but the long-term reward is the fact that you made it through, alive and well. This will land you right back on your sofa hunkering down until the storm passes, whenever that may be. Consider this option if you cannot afford to risk losing any more.

Here Comes the Fall… in February!

If you do not want to risk everything, but you are not ready to hunker down yet, consider #2 and start swimming to shore.

Below are a few different floaties for you to consider grabbing onto while swimming:

  1. You may recall reading some of Mike Cobb’s articles about the benefits of teak ownership. For centuries, timber ownership has continued to be an effective and profitable method to achieve generational wealth stewardship.Billion-dollar fund manager Jeremy Grantham reminds us, “Unlike investors, trees remain blissfully unaware of the Great Recession, the jobs picture, and how much money is being printed in Washington. Trees keep growing no matter how negative today’s headlines may be.”Dr. Steve Sjuggerud also provides his two cents on the perks of timber ownership:

Here Comes the Fall… in February!

Through full-title ownership of your own turnkey teak farm, you achieve diversification on two fronts: country diversification and asset classes. Mature teak parcel options in attractive foreign-investor-friendly countries start as low as $17,500.  REQUEST MORE INFORMATION HERE.

  1. Ownership of direct Pacific-front suites. Beachfront real estate tends to be priced at a premium because of the limited acreage of direct waterfront land. Regardless of what the economy does, ownership of a hard asset with direct water and sunset views continues to remain in style. Enjoy a cold beverage while watching the colorful sunset right before your eyes. And when you’re not in town, rent out your condo for some extra cash. It’s a win-win. Think of the peace of mind of knowing that you have a landing pad outside of your home country in case you need to get away for a bit.

Beachfront condos starting at only $139,900.  More information here.

Here Comes the Fall… in February!

  1. Participate in a short-term infrastructure bond to build out an exclusive new beachfront community. If you’re thinking for the short-term and like the guarantee of knowing you’ll receive double-digit returns over a 1-3 year period, consider participation in the Santa Barbara Infrastructure Bond at Gran Pacifica. Limited to only a couple more units, this opportunity is more than 75% sold out by other savvy internationally-minded investors. Starting at only $125,000 for a ½ unit.  Request additional information here.  **ACCREDITED INVESTORS ONLY**

Friends, it is obvious there is volatility – and the choice is yours to make a move. Above are just a few suggestions

that have historically detailed great success, and I wanted to pass them along to you.

Your prudence will set you apart from your friends and family members who may think you are off your rocker. You’ll thank yourself later.

This article was published in the Escape Artist Weekly Newsletter on February 06, 2018. If you would like to subscribe to the newsletter, please click here.