| 11 July 2008
I’ve said it before, but probably not here. Anyway, it can’t hurt
to repeat this important mantra: The return of your capital is more
important than the return on your capital.
Before, I’ve used this cliche more in terms of avoiding investment scams.
These days, I’m using it to refer to the markets in general. We are now
in a bear market. The economic and fiscal environment continues to deteriorate.
Stocks are going down.
I believe that commodities will continue their overall upward trend, but that
doesn’t mean that prices won’t fluctuate in the short term. Some
who are prone to conspiracy theories believe the gold price is being surpressed
by the US treasury - they may well be right.
As commodity prices fluctuate, shares that rely on them are taking a beating.
The market, remember, is not logical. It depends on short term emotions and
is driven by derivatives which can cause havoc based on even minor price fluctuations.
Therefore, keeping your money in the markets is risky at the moment - really
only for the brave!
My personal inclination is to keep most of your assets right now in solid,
long term investments like gold and real estate. In terms of gold, buy physical
gold if you can, rather than ETFs. It’s harder to buy and sell, but worth
the effort in terms of security. A nice watertight set-up is a Panama S.A. (anonymous
corporation) owned by a Private Foundation, with a bank account and safe deposit
box in a European bank. You can buy the gold and hold it there in Europe. This
whole set up costs less than you might imagine.
Needless to say, though, avoid banks like UBS which are in big trouble at
the moment (derivatives exposure, plus the US Justice Department is trying to
get the IRS access to information on UBS account holders in Switzerland) If
you need referrals to European banks, feel free to contact my office.
People will always need places to live and land to grow food, too. Foreign
real estate is a secure, confidential and non-reportable investment… if
you buy carefully.
Look forward to more blog entries about Freedom, Wealth and Privacy. I hope
you enjoy them and that you can use the information here to benefit your business
and your life. In turn I would much appreciate your feedback, comments and questions.
I can be contacted via info@petermacfarlane.net.
Peter Macfarlane is joint editor of The Q Wealth Report an established
newsletter dedicated to informing readers about creating, protecting and growing
wealth in a secure offshore environment. It also covers international living,
banking, retiring and investing. Visit www.QWealthReport.com
to see more.
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Peter Macfarlane of The Q Wealth Report blogs on Freedom, Wealth and Privacy
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