Protect Your Net Worth & Assets
218: Make More Money During Uncertain Macro Periods
Good morning everyone.
Earlier this week we covered some of the larger macro and geopolitical risk factors to watch out for in the next 6-12 months.
I’d advise reading that at some point — even if it’s after this post today. Both articles will help provide the most holistic view of the points I am trying to get across about the state of the world and its relationship to our finances, mental health, and success in life.
There’s a lot going on right now and many people are confused about the state of markets and global affairs. Not many of us have the time to stay up to speed on all of it — but I did my best today to condense everything you should know into a 15 minute read along with my general thoughts on how to protect your net worth and assets despite what’s going on around us.
Saudi Arabia’s economy slowed in the second quarter, as crude output cuts and a drop in oil prices are taking a toll on one the fastest growing nations of the G20. This will trickle down to US consumers. Niger, South Africa, and France have all been dealing with violent disruptions and uprisings. China, whose growth has slowed recently which will impact global commodity demand and India’s annual demand for major commodities — like oil, coal, gas, copper, aluminum and steel — is expected to rise collectively by more than 5% from now till 2030 (CNBC/ANZ) — in many realms India, a key BRICs member, will be outpacing China.
President Donald Trump is facing multiple indictments in the US at the same time whistleblowers and former business partners of Hunter Biden, are providing convincing accounts and evidence of illicit business arrangements between Hunter biden, Joe Biden, and various business associates in foreign countries. Civil disorder and unrest will grow amid these indictments and the approach of the 2024 elections.
We’ve had UFO disclosures in congress, threat assessments disclosed by the current administration on Chinese cyber capability, and a powerful downgrade of U.S. credit for the second time in the nation's history on Tuesday by the ratings agency Fitch Ratings.
In short — this suggests a loss of confidence in the US’ ability to make good on it’s debt which amounts to about $31 Trillion. This makes it potentially more expensive and harder for the US government to borrow money — leading to a cut in spending for government programs and potentially higher taxes.
Do you have a solid grasp on all of these developments?
You might have an investment account, a retirement account, and some cash on hand — but are you properly hedged and positioned to take advantage of one of two outcomes?
Either the inevitable recession hits home hard and markets correct hard — or we continue to pump higher with the characteristic synthetic logic defying climb we’ve seen over the last 2.5 years.
Today is about making sure you are properly positioned to ride the wave either way,
Today I will outline the following:
Geopolitical Implications of world events right now (Biger, Russia, BRICs, etc.)
My Current Investment Approach (For the next 6-10 months)
General Strategy for the worst case outcome (recession truly hits)
The Current Financial Paradigm Shift - digital currencies, CBDCs, and assets
How to position yourself to protect and make more money in the coming months
If you don’t have the time to read about foreign affairs or macro updates regularly — this post is for you. If you have money in the market but are unclear on what to do moving forward this post is for you. Even if you’re a seasoned investor and think you’re currently sitting pretty there may be some valuable insights to take away from today’s deep dive.
The goal today is to supplement the macro and geopolitical risk outlook with the steps you can take to position yourself for either outcome. Nobody wants or likes to get blindsided and lose 20% of their portfolio or net worth overnight. As the nature of US work gets more competitive and layoffs continue to increase, it will be vital to square yourself away financially and know where you stand.
Without the proper knowledge or awareness people are going to miss out on the opportunity to greatly benefit from the possible rapid adoption of new tech like defi, crypto, AI, advanced defense tech, and automation. Worse — they could see themselves get into a financial crunch when it comes to overbuying a home or vehicle or managing money irresponsibly with rising consumer costs and lack of certain services and goods.
The world is changing quickly. Geopolitical developments and international politics are now indicating that a line is being drawn in the sand — one in which Western dollar backed nations must compete to get along with potential adversarial nations who aren’t so eager to remain under the thumb of the US with wars expanding and populations becoming restless due to high inflation, costs, and ineffective leadership.
Ignore the current situation at your own risk — these developments will determine who wins and who loses in the next several years.