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The US.US. are in a sorry state. We are not referring to the widespread chronic obesity among its inhabitants, nor to the mental instability of the armed schoolchildren who carry out massacres at their schools. We are referring to its economy and its geopolitical situation: a mortgage crisis that includes the sharp fall in the value of American banking in general, terrorist threat Islamist on its own territory, pseudo-warVietnamese in the Persian Gulf, their enemies southerners beyond the Castro supporters are on the rise, a nuclear threat from Russian-backed extremists, etc…

The invasive virus coursing through American veins and causing that state of shock with a very high fever and blood test results that were completely out of the norm, is appropriate from countries such as China, Venezuela, Iraq, Russia, Cuba, Bolivia, Iran and others who have injected a host of pathogens into the US economy. Their bad habits and the unsustainable domestic credit practices they have exported have done the rest. Their constant actions have ceased to to be, his life is in danger, and with it the survival of Western economies; for our part, we are trying to protect and save the life of our capitalist model with all the resources at our disposal. Europe has thus become the healthcare team on which the necessary recovery of what was once the world’s largest and strongest economy for decades depends.

That’s right, the US’s best and most powerful weapon has always been its position No.. 1 in the global economy. The traditional driving force of capitalism is now set to face far greater difficulties due to China’s unfair competition and the other ‘viruses’ that have been injected into it, causing it to become seriously ill worrying for those of us who depend on this breadwinner. There are many of us doctors and nurses who are treating him, medicating him, feeding him, caring for him and even praying in various languages and to various gods for his recovery. Europe, like other countries in the rest of the capitalist world, is sacrificing its currency, its banking and corporate profits, and whatever else is needed to restore American patient. Risking catching some (or all) of their ailments, and with the prospect of falling ill just as they are recovering Yankee should that happen. It is possible that in the future the patient may have to act as a doctor and vice versa, but I doubt that, once back on their feet and in a white coat, they would make such sacrifices to save the life of a European patient, even if that patient were terminally ill.

For the time being, blood transfusions worldwide are USA... essentially from Europe, whose blood type seems particularly compatible with that of the North American, is keeping the economy of that ailing world leader afloat. One euro shorta policy that keeps the dollar at levels that would revive the dead, turns the Plan Marshall in the 1947 singles peanuts now repaid, unwittingly, with usurious interest. We could talk about European altruism or the instinct for survival, since if Dad Yankee (the head of the family) dies, the rest of his European offspring will have a very, very hard time of it. What seems crystal clear to us is that this massive transfusion continues day after day, whilst Europe’s cheeks grow pale and wither away extremely proud the «strength of the euro, the world’s safe-haven currency» (sic). A rampant crisis in which we find ourselves trapped, with no room for manoeuvre in the short to medium term. Perhaps the lack of blood flow to our brain (the one upstairs) is one of the reasons why our beloved European stock market keeps rising and rising, oblivious to reality macroeconomic and the impending perfect storm.

Personally, I am less terrified by this anaemic scenario in the Old Continent than by the capitalist collapse of the New World, which could lead to the extinction of a financial system that would sweep away the very foundations of global capitalism. That is why I believe that Europe’s sacrifice is necessary if we are to revive the American patient by means of transfusions, vitamins, medication, rest and pampering. Their immune system starts to kick in and the scavengers native o foreigners help prevent life-threatening complications.

In Europe, it’s all about cash, but at US.US It's about time to start investing. As always, the article is insightful, Jose Mª Díaz Vallejo EURO/DOLLAR – The currency has taken a nosedive, in which he gives a few practical examples of the advantage that the recipient gains over time compared to the donor.

European altruism, solidarity or obligation to save the sick person, lest they run us over or leave us helpless in the face of a new (dis-)order worldwide with the enemies of North America on the head.

Perhaps Europe’s future inevitably lies in taking a hit in order to save the lives of the US.US. and then cross our fingers that the US leadership will be able to look after us during our economic decline, which is just around the corner – as distant as the recovery of our American patient.

A good shot from Yuan expensive oil and cheap oil would revive the ailing economy and, incidentally, the team Doctors Without Borders in spectacular fashion. I’ll tell my children to put it on their list for the Three Kings… from the East, of course.

Happy Holidays and a Happy New Year. Here’s to a better year.

As everyone knows that a fee is not the same as a commission. Etymologically, a fee honours the person receiving it, who is usually a self-employed professional, whereas a commission agent is not grants always the best reputation. It is a burden we all bear that banks charge all sorts of fees (small, medium, transparent, obscure and even Ali Drool), but… What if bank charges were levied as a fixed fee or percentage of each customer’s total assets, regardless of the products and services they use?

Let’s think about it. Let’s think about it again. Questions arise fascinating, isn't it? For example, quantifying this all-in-one fee It could be as simple as applying the average profit from the bank’s current customer accounts as a percentage of the amount contributed by the saver or investor. In other words, for every euro the customer deposits with the bank, the bank deducts its one-off fee annually, half-yearly, quarterly or however it sees fit. Obviously, loans and mortgages would have to generate the cost of the money itself separately, with whatever margin the financial institution wishes to add, as it would not be fair for a customer who generates an asset for the bank to pay the same as one who generates a liability (or perhaps it would). But from there on, it’s the same for everyone.

This is just a light-hearted exercise, and I hope it will prompt some comments from you all, which I’m sure will be very interesting and insightful. Some of you may think it’s unfair for a casual saver to pay the same proportion as a more active investor who will be using a whole range of financial products and tools. At first glance, it may seem that way, but Let's have a look at it One more thing: what happens to a saver who neither wants nor knows how to invest their money beyond seeing it reflected in their savings account? They are easy prey for fund managers who kindly cause to invest their money in financial products that no member of their family can understand. This harassment is constant, relentless and ruthless. The money unemployed Placing money in a simple savings account or a fixed-term deposit is considered negligence on the part of the bank employee on duty, bordering on gross misconduct. This misnamed ‘adviser’ needs sell financial products that improve their clients’ operating results if they do not want to lose their job. Furthermore, they must do so exceptionally well if they hope to progress within the organisation and move from a customer-facing role to a more senior position—in other words, to go from a rank-and-file employee to cigarette lighter. I have personally met a few honest and dedicated bank managers who try to to do as little collateral damage as possible whilst barely meeting their commercial obligations, but they all feel uncomfortable with the work they do and long to one day be able to offer independent advice without the commercial pressure they feel is being exerted on them by their superiors. Obviously Only a lucky few will succeed. The rest will continue to live by the rule that has been etched into their very being: Sell or die.

Some of you might say that this commercial pressure is common to most of the work we do, and that’s true. But as I see it, it is infinitely more serious to sell inappropriately a financial investment product which, for example, consists of a collection of DVDs that we don’t need. Ethically speaking, there is no comparison: the significance and danger of negligence when it comes to our heritage is vital not only for us but also for our children. You don’t mess about with food.

In a scenario where a bank manager generated exactly the same profit for their firm, regardless of the volume of assets or the type of investment their clients made, the advice would be provided in a manner infinitamentity more appropriate and tailored to the needs and intentions of investors and savers. Even their personal relationship with them would improve substantially if, instead of selling to them, I simply provided them with a service. A service that would be worth a fixed percentage of the total amount of money customers have deposited with the bank. The professional expertise of the fund managers and the banks themselves would do the rest, and moreover, the monitoring of these fees by a competent body would be far simpler and more effective.

This scenario would be far more hygienic and convenient than the current one. Many of you will think it’s unfeasible or utopian; perhaps it is. But at the end of the day, it’s how a family office any self-respecting to be, and therefore does not have its own financial products. Obviously, the bank should continue to develop its own products, but without shove them down their throats straight to the heart of the financially inexperienced customer – that is, the vast majority.

The current situation is unlikely to improve much with the MiFID, as reported Consumerist y Echevarri in his interesting articles. As he rightly says Echevarri: «…it ends up protecting financial institutions rather than customers.» More or less the same kind of exploitation we see on a daily basis will continue, since, unfortunately, bank profits depend largely on it.

Anyway, we just wanted to put this idea out there so that you can let us know what you think. It’s always good to give some thought to to question ourselves methods that do not have to be set in stone. Progress has always depended on this.

The £25 billion injections made by the Bank of England (Bank of England) to the popularised Northern Rock have been and remain a source of contention amongst Britain’s political and financial elite, as well as within the EU. The funds lent to ensure the bank’s solvency in the face of capital flight to other institutions are guaranteed by the Treasury. It could not have been otherwise; either solvency was guaranteed, or the domino effect could have put the entire British banking system – and by extension the European one too – in serious trouble. The consequences of this would be incalculable, and the banking sector in the US and the rest of the world is not exactly in the best of health, shall we say. Consequently, the actions of the FSA, from the Bank of England or the Ministry of Economy, was flawless and succeeded in containing the crisis perfectly; it will be fully resolved when the scavenger on duty do its job and take advantage of this situation, to the benefit of us all. For the time being, the vultures circling Northern Rock’s dying body are Olivant, Cerberus or Virgin itself, among others. I recommend this excellent article by Enrique Gallego, who understands the situation at this bank better than almost anyone else. Although, in the end, an even more powerful and professional vulture will probably step in, recycling the spoils with the approval of the Chancellor of the Exchequer (Darling) and returning the cheque to the forced lender, much to everyone’s relief. Faced with a crisis such as that of this bank or any other, and I would go so far as to say in general:

A loan is infinitely healthier than a grant, but an investment is even better.

But what is truly scandalous is that the European Commission is seeking to boycott this welcome rescue operation launched by the Bank of England, which has averted a crisis of confidence with potentially global consequences. Officials (some call them politicians or pseudo-bureaucrats) at the Commission are threatening to scrutinise these loans to ensure the integrity of free competition. The funds lent by the Bank of England are guaranteed by the British Treasury and could therefore be regarded by these officials as intolerable state aid. Unbelievable.

It should not occur to any rational mind—be it civil servants, politicians or bureaucrats—that Northern Rock’s competitors feel they are being treated unfairly because of the cash injections received to quell the crisis of confidence in the banking sector. But the European Commission’s inability to grasp the global credit landscape is made clear by its threats to launch an investigation. Ladies and gentlemen, no British bank – nor, for that matter, any bank in the world – has been treated unfairly because of the «preferential treatment» accorded to Northern Rock through the capital injections provided by its central bank. Quite the opposite, had these injections not been administered, the problem would have spread like wildfire. The explosion could have reached the ECB, the EDF and, of course, into the pockets of the European Commission itself. The potential for a devastating shockwave was effectively nipped in the bud from the outset by the guarantee of funds from the UK Treasury. The process will soon be perfected with the acquisition of the bank’s remains by the vulture of the moment, thus completing the cycle of the global financial food chain.

These are fundamental principles of the global financial and business markets, but they appear to pose a threat to the integrity of free competition in the eyes of certain European pseudo-bureaucrats, who could do with some basic lessons in common sense, the responsibilities of their positions, and a grasp of reality.

Pure incompetence, even if it’s disguised as overzealousness.

Almost all of us have at some point suffered from an infection that has required a course of antibiotics to clear up. These medicines, in tablet form, are usually prescribed in varying doses, with one or more tablets to be taken each day over the course of a treatment that often needs to be continued for at least a week. The symptoms of the illness (fever, decay, discomfort, etc.) do not disappear after the first dose, but usually do so after a few days and following several doses of the antibiotic. Similarly, once the symptoms have disappeared, we must continue with the course of treatment until it is fully completed; otherwise, we could suffer a relapse.

If we apply this dynamic to the current credit crisis, we can draw some interesting conclusions: Let’s say that the infection is the mortgage crisis, which is affecting the creditworthiness of almost our entire financial system. The fever and symptoms are evident in the stock market performance of that sector, the sudden rise in default rates across all types of debt, the necessary liquidity injections provided by central banks worldwide, and so on. Furthermore, this infection is not localised in our tonsils, as one might expect, but rather the source of the infection is mysteriously and dangerously widespread, as we have already explained in Where is Wally?. We are therefore faced with a sepsis credit in every sense of the word. But that is not the end of our clinical picture: this infection has struck us right in the middle of weakened immune system or, as it is also known, the energy crisis, with oil at $100 a barrel and rising; the rise in Euribor makes us choking y distress, as well as a depression The local estate agent is really putting us off everything. From the jihad globalised We’d better not talk, just in case our hypochondria proves to be more well-founded (or fundamentalism).

Given a clinical picture such as the one we have described, and always with reference to the average investor or patient, the most appropriate and effective treatment is rest to conserve our limited energy, fever-reducing to bring the fever down and, of course, a course of treatment antibiotic which must be strictly followed if we are to recover without relapses or complications. In fact, I would say it is the only possible treatment.

The rest, even if it is not absolute, we would apply it to our investments in RV since we are not in the best position to deal with the stressful current market. Perhaps in a few days’ time, when the fever has broken and we’re feeling a bit better, it will be time to make a strong comeback with our flexible investments. But as things stand, we need to take it easy and stick to really good food. The scraps are only for those who scavengers with pedigree.

The fever-reducing, in their various forms, such as property sales, will help us to lower the temperature in our oversized mortgage boom. Investments in RF They will also help bring our stock market fever down. If we also maintain our income by collecting our sick pay on time, we’ll avoid chills and shivers. In short, these are remedies that won’t cure the global infection, but they will help us feel less ill.

And so we come to the what on the matter: The antibiotic. Is there any effective medication to cure sepsis caused by the US mortgage crisis? According to our modest knowledge of economics and healthcare, this ‘antibiotic’ is called balance sheet showing a loss. Investment banks and the banking sector in general began a few weeks ago (some even earlier) to publicly acknowledge massive losses arising from collateralised debt. In other words, the defaults in the securitisations that the financos were built on feet of clay, and the sorters irreverently blessed them. It is only through the quarterly publication of losses—recognised and recorded in the relevant balance sheets—that they can be assimilated, reconciled, accounted for, realised and, ultimately, to digest los billions dollars and euros lost in securitisations qualified hammered with several A’s.

This slow and painful process of acknowledging gaps and losses that come out of the closet for to take shape in financial statements, they are the antibiotic tablets that will slowly but effectively cure the sepsis credit which the global economic system is suffering. Some accompany the publication of this dire news with a shameful resignation or a pretentious termination devastating from the head of everyone capi of the company. Although I doubt that the shareholders and/or those affected by that disregard for risk (don’t miss out on What’s happening in the financial sector? from JMDV) offers them any comfort at all. Perhaps seeing the credit rating agencies hanging in the Plaza Mayor would be quite a bit more rewarding, but I'm afraid there's no way to make up for it.

We now have a clear diagnosis (something we didn’t have at the start of the summer) and have started taking the first pill of a antibiotic treatment which may span two financial years fully aware. With the first doses, we won’t feel any improvement in symptoms just yet; it may take some time for that to happen. However, the publication of results is beginning to eliminate bacteria and microbes, and this elimination will become more evident and potent once the respective financial periods of the affected entities have ended. It will be then that the seals and signatures of the auditing firms, living up to their name, will certify the veracity (sic) of those losses. Some organisations will not be able to withstand this public and accounting scrutiny. But the natural course of events will take its toll, and then the scavengers with pedigree which will be responsible for absorbing aseptically human and financial assets that have not passed the accounting test.

Our convalescence It will be a long process, but it seems clear that we will come through this. That said, we must see the process through to the end and iron out all the discrepancies in the audited financial statements. And that may not be possible until we have had the accounts audited for a couple of years, as once we have closed the current will continue collateral debts are exploding in the hands of the world’s most financially sound institutions. For now, stick to your medication, get plenty of rest and take care with the fever.

This is proving to be a real struggle, no doubt about it. Along the way, we’ll lose a good chunk of our physical and mental health, as well as money—lots of money. Damn natural selection… or maybe not.

Chance has led me to a post from solobolsa.org in which he offers a simple reflection on what to do if we win the lottery. Before getting into the details, let me fill in the figures on the percentages of lucky winners who have lost or spent it all within 5 and 10 years: 35% in less than 5 years; but the percentage of those who have gone bankrupt soars to almost 90% after 10 years. Terrifying, isn’t it? However, these figures should be adjusted slightly downwards to account for the minority of cases where people may have evaded the tax authorities and moved to opaque paradises prosecutors, joining the long list of those who have fallen on hard times.

Apart from a few exceptions, I suppose the first thing you’ve all thought on reading this statistic is that «that wouldn’t happen to me», because we believe we’re capable of making far fewer mistakes than others. Perhaps that’s true in some cases, but the fact is that those who make the most reckless mistakes, commit the most rookie blunders, and are the most naive and least prepared, end up ruined much sooner. These are the views of the article’s author, and I fear they are shared by many who will probably never read our blog:

– Share a 10% with family and close friends.
– Donate another 10% to charity.
– Pay off my house; that would clear my mortgage.
– Change the car; it’s about time.
– 25%. I would buy some shares – at least five of them, across different sectors – with a high dividend, which would allow me to earn a little more (if possible, quite a bit more) each month than I do in my current job.
– 5% for investments in plots of land, flats or property funds.
– I would invest the remainder in global actively managed equity funds and at least 5% in fixed-income investments, with a focus on short-term instruments.

If you take a closer look at the author’s plans, you’ll realise that, in his case, he might have some money left after 10 years, but it will basically depend on the stock market and whether he has the nerves of steel to hold on when it falls, or whether he’ll be tempted to invest in a business or enjoy life a bit more. But under no circumstances do his plans guarantee his future.

The first major mistake: spending small amounts straight away on family, friends and charity. The second major mistake is paying off any outstanding mortgage(s). The third is buying a car straight away. As for the rest, apart from a 5% in property investment and another 5 % in short-term fixed-income investments, it is to be invested exclusively in the stock market.

But the crux of these mistakes lies not so much in how the money is spent, but in the way the wealth is structured. Let’s take it step by step:

When a lottery winner or heir receives a large sum of money that is set to radically change their life – for better or for worse – the first thing they should do is seek out an independent counsellor or adviser with experience in dealing with such cases. Clearly, it is not possible to find such professionals amongst private banks, law firms or asset managers, or money managers from investment firms. If your wealth is not sufficient to engage the services of a multi-family office, and assuming you cannot find an independent adviser capable of guiding you towards safeguarding and growing your wealth in the medium to long term, we shall attempt to provide some general guidelines that may help to clarify certain concepts for those who find themselves in a similar situation, whether through winning a lottery or as heirs.

Firstly, you need to start by investing your money in liquid fixed-income assets from day one. That way, you’ll have days, weeks or months to find a good financial adviser and make decisions – lots of decisions. Draw up a wish list which allows us to plan how we want to live from that point onwards. We need to work out the income required to maintain our desired standard of living and factor in the long-term mortgage repayments for the properties we wish to buy in the near future. Once this monthly or annual figure has been calculated, we must add in contingencies, health insurance, financial support for others, medium-term care needs for family members, overall wealth growth at CPI x 2, and a long list of other items that we almost always forget when we draw up a wish list without proper advice. Of course, this list will vary considerably from one case to another, as we cannot apply the coffee for everyone when it comes to shaping our future way of life.

From this point onwards, we must restructure our assets to check whether they generate sufficient income to support our lifestyle, including, of course, any mortgages arising from the purchase of the properties we wish to acquire. If this is not the case, we will need to review our wish list downwards. Obviously, sound tax advice will enable us to structure our Global Wealth Plan in such a way as to minimise the tax liability.

There is a huge difference between receiving a prize or inheritance and starting to spend small (or large) amounts whilst investing the remainder in equities; or using the fixed-income returns generated by all those assets to spend, help others, plan for the future or buy property with mortgages. Naturally, we must be able to invest our money in such a way as to achieve returns that exceed mortgage costs whilst minimising risk. And we will achieve this through sound advice, effective tax planning and a minimum investment threshold that allows us to access certain financial products and, of course, to pay for the services of this comprehensive expert advice.

Returning to the example of our friend from SoloBolsa.org, you’ll see that you could do practically the same thing: give money to family and friends, make donations, buy a new car, etc. You could even invest part of your earnings in the stock market. But we should neither pay off mortgages nor leave the future growth of our assets in the hands of the stock market, as that growth must be safeguarded and secured.

These protocols, which are designed for sudden windfalls (such as lottery winnings or inheritances), are essentially also applicable to any type of medium- to high-value wealth, even if it is newly acquired wealth resulting from the sale of property, shares or business profits.

Even in the case of fortunes that are just beginning to take shape, without lotteries or inheritances, as we mentioned in our article Cluster effect back in April:

«Although many may not believe it, doing the right thing and working with diligence and wisdom attracts good fortune. Perhaps the good luck »it is not as random as the fools would have us believe, and I would go so far as to say that, in economic terms, it is not even that unfair.’

I’ve just happened to come across this article we wrote on 19 May whilst re-reading it. Given the current circumstances and outlook for our entire economic system, I find this case shocking to say the least – yet it is as real as life itself. I think it’s worth reading it again and realising that, in the midst of the financial jungle in which we live, there are people who are oblivious to almost everything, whose role is simply to serve as cannon fodder to cover up the system’s shortcomings. It makes me think – what about you?

«One more olive tree.».

However, I love this game!

Predictions are always easy to make but very difficult to get right. As I’ve already mentioned repeated It is often said that currency speculation is the mother of all speculation. But in the same vein, I would also go so far as to say that speculating on the direction of interest rates is one of the most predictable bets or speculations we can make across the entire economic landscape.

However, the current situation that has arisen since this summer as a result of the global credit crisis has created a great deal of uncertainty in this area. The rally The rise in interest rates for both $ and the euro has been cut short unexpectedly due to the serious destabilisation of the US mortgage market. Fears that the global securitised credit bubble might burst have forced a radical change of course in the upward trend in interest rates for the world’s two benchmark currencies.

The Research Department of the BBVA warns according to a report in *Expansión* that in just one year’s time we’ll be able to see the Euribor at 3.9%, compared with the current 4.725.

If, as we said at the start, currency speculation is the mother of all speculation, interest rate speculation could be the youngest of her daughters. So how might we derive some benefit from this higher level of predictability? A logical option would be to position ourselves in medium- or long-term fixed income, moving away from the contrarian strategy that has been recommended during the recent period of rising interest rates we have experienced. We are not suggesting that one should abandon the RV in support of the RF but rather that we consider a change in the investment horizon strategy for the latter.

It seems reasonable to assume that, if the negative effects of the credit crisis are set to persist over time due to the involvement of securitised mortgages in the medium and long term, we can also expect a scenario in which interest rates flat moderately bearish or even slightly bearish in the short term. The ghost inflation, which is so feared by all official bodies in times of economic prosperity, becomes a the lesser of two evils during times of major crisis, such as the current credit and liquidity crisis affecting the system. In other words, the ghost It’s not so scary next to a Alien, and a rise in inflation is better than a collapse of the system. However, we have already made our view clear regarding the possibility that this crisis might bring down the system, despite the irresponsible panic. You can now look back (not all texts stand up to this test) at the articles we wrote at the height of the crisis back in August: A historic opportunity or a global economic collapse (I), also the second part and (II), or No news, bad news...good opportunities.

A slowdown in interest rate rises boosts hopes of overcoming the crisis and makes investing in RF, lending our money preferably to solvent companies outside the financial sector, although we can also take on greater risk and find real bargains within the sector, as was suggested at the time Buffett. But there’s no doubt that the crisis of confidence is leaving us with some real gems, whose returns shine even brighter now that interest rates have come to a halt.

Investors who cannot conceive of diversifying their portfolio without allocating an overwhelming proportion of their assets to property suffered a severe psychological blow when they were forced to accept the evidence that the Spanish property market had peaked. Although for some it proved more difficult than they would have liked to become aware Although it was initially thought that the bull market had collapsed, it now seems to be generally accepted that new property investments should be made in other countries with greater potential rally singer.

Some people already emigrated a few years ago to countries such as, for example Bulgaria, Romania or Morocco, in search of the big wins they were after accustomed. Others have done so recently and at the wrong time, since – just like on the stock market – it’s others who have to earn the last euro. However, the shrewdest among them have gone one better intra-Community in Malta, with excellent results. In short: speculators, those with deep pockets and even small investors on the lookout for bullish property cycles, which coincide over time with the emergence of countries with fledgling economies as they join the all-powerful EU (or also known as Pokerian linnet).

As he explains so well Echevarri, the monetisation via ‘Rentals in Spain’ is endemically careless. And this pushes us even further into the abyss of property investment in countries in the process of who knows what.

But against this backdrop demotivating For those who cannot imagine building their wealth without bricks and mortar, an old-yet-new world and a dazzling paradise has opened up. Why not stop looking eastwards and start looking towards the west?
There’s a bit of everything there: developed countries, developing countries and even countries that are on the way to who knows what. And all of this under a wonderful common theme called US $. Indeed, with one euro to one and a half dollars Any investment across almost the entire American continent is a real bargain. You simply need to choose according to your investment preferences: Property primes in full Manhattan, resorts in true Marina d’ style’Or in Florida, the Mexico more touristy, Central America, the Caribbean, Brazil, Punta del Este (Uruguay), Argentina, etc., etc., etc. The only thing left would be for the Castro family to join the Euro party and for Havana to soon become a mini-Shanghai just 90 miles from Miami.

All in all, a veritable real estate investment frenzy at one and a half dollars to the euro. Will there be anyone who still prefers to speak broken Hungarian or Romanian rather than conquer the The Americas with a perfect Espanglish?

It reminds me of that black-and-white film called Welcomeo Mr. Marshall with that endearing little song: «You we were welcomed Americans with so happyyy«. But on reflection, European investment in the Americas is purely speculative and lacks the spirit of reconstruction that characterised the Plan Marshall, although he could certainly do with one from Chihuahua downwards.

Anyway, it’ll always help to calm the jumpsuit Spanish and European investors’ property portfolios. With the euro trading at one and a half dollars, the term ‘New World’ is taking on new meaning once again. Let’s hope it doesn’t end up like the Wild West. Nor that, in a few years’ time, Europe will once again need a Marshall Plan to repair the damage caused by the excesses of the euro. For the time being, as they would say, fundamentalists Estate agents: God bless America, we trust in «bricks and mortar».

Which is more important, winning a match or a championship? A GP Formula 1 or becoming world champion? Winning a battle or the war? We see time and time again that sportspeople who retain the result Strategically speaking, sometimes simply picking up points is vital to becoming champion. Pace yourself, looking after the car’s mechanics or tyres, taking your foot off the accelerator at critical moments when others take greater risks out of necessity or recklessness. All of this forms part of the strategies needed to succeed.

However, when it comes to our assets, our strategic vision becomes blurred and oversimplified to a very dangerous extent. Most people are only concerned with the short-term return they will get on their cash. And they lose sight of the ultimate goal, which should be the sustained growth of everyone its assets over the decades. As we have already mentioned in The investor Resilient for the month of July:

«We’re all capable of making good investments; we simply need to seek advice from someone who can help us avoid making a lot of bad ones.»

But the most important thing is to realise that the long-term performance of our assets will be the sum of these two, the investments the good and the bad. And also the future growth we are able to deliver for the rest of our assets, which do not are investments in the strict sense of the word. Despite this, most people focus on achieving the highest possible rate of return on their cash, keeping track of their returns on a monthly, half-yearly or annual basis, but few look beyond that. Property translates into rental income and passive capital gains which, rather unremarkably, will accrue of their own accord over the years (however, as we have explained in a previous post, we dare to challenge some of the principles of Kiyosaki). But what is undoubtedly the biggest mistake is that obfuscation due to immediacy on the return on our cash, which requires no rigour whatsoever.

We often talk about investors, when in fact we should be talking about managers. Although most people are only concerned about one investment Given its short-term benefits, the right thing to do would be manage and/or to manage oneself our own assets for their long-term growth. That’s the best way to make money over the course of our lives. On the other hand, focusing solely on the desire to achieve a 10, 20 or 30% return on the stock market every 31 December may have negative consequences for the rest of our long-term wealth.

The de-taxation The gradual diversification of our assets as they grow is a winning strategy in the medium and long term, as when a portfolio is still in its early stages it is much easier toto eat the legal framework to ensure that its growth takes place in an environment of low taxation. On the other hand, when one’s wealth is already considerable, the de-taxation what can be obtained legally is much more limited, although by no means negligible if it is done imaginatively and expertly.

The Strategy, we must devise the overarching strategy ourselves, if possible with the help of a director or Counsellor, but always adapting it to our family’s current and, above all, future needs. The other key factor is the Rigor. Deviations from our strategic wealth plan due to a lack of rigour are the most common causes of poor growth (or decline) in our wealth over the years. Of course, all of this must be updated regularly in line with changes in our lives: career, family, geographical, etc.

The Championships are among the representatives (or self-advocates), whilst races or matches are rife with investors who are solely focused on the glory of immediate, one-off results, thereby putting those whose sole aim is to become champions and go down in the history of that sport at serious risk of injury or accident.

Whilst re-reading some of our articles from a few months ago, I came across one that I’d like to revisit—or for those of you who’ve only recently started following us to read for the first time. It’s about the A Guide to Financial Independence for the Average Household.

That said, whether you’ve read this before or not, I’d like to emphasise the potential our heritage holds if we harness it properly and make the most of everything it has to offer. Cash, business opportunities, but above all the properties can and should generate income which go far beyond simple rentals which they can only hope to secure at best. All our properties can be an asset, even the properties we reserve for our own enjoyment.

Let’s remember that Robert Kiyosaki In his numerous books, he proclaims to his readers that «your home is not an asset», referring to the long-standing custom of treating properties used for one’s own use and enjoyment as just another item on the assets side of the balance sheet, which in reality only «take money out of your pocket». But if we can find alternative financial arrangements capable of generating fixed and secure income that exceeds mortgage costs, we can turn this scenario on its head:

The property cycle has now run its course. And it will remain so for the next few years. But for those who feel uncomfortable unless the bulk of their assets consists of property, even during downturns, there are some very attractive financial solutions. Apart from any rental income they may generate, utilising the mortgage value of their property will allow them to continue to benefit from the potential return on that capital and future capital gains on the properties, even for those intended for their own use.

Let’s take an example: We suggest to a new Family Office client that they divest themselves of property in favour of cash, so they can invest in fixed-income securities that will generate a regular income, which will be applied appropriately and rigorously to their PGR. But he argues that some properties have sentimental value that he wishes to preserve, or he is confident that property is a safe investment even in a cycle such as the one we have now entered. Or perhaps he does not feel comfortable without owning a certain number of flats, plots of land, etc., which he believes will not be affected by the crisis in the sector. They also argue that if the bear market suddenly turns into a bull market, not being positioned would entail a very significant opportunity cost. Well, the solution we would propose is the initial conversion of properties intended to generate rental income – those to which you have no particular attachment and which are likely to sell for cash. You could also use a mortgage to finance properties with sentimental value or those intended for your own enjoyment, and invest the proceeds in high-security fixed-income investments at a higher interest rate than the mortgage rate. All of this would be implemented financially to generate fixed income in the most advantageous way, and immediately afterwards, this income would enable the acquisition, via mortgage or leverage, of new properties that are better selected and suited to the PGR. The opportunity cost would be eliminated as potential capital gains would remain intact, the selection of properties would be better suited to the family’s present and future needs, and furthermore, the fixed income generated would, of course, comfortably exceed the mortgage costs of all transactions. This margin would even allow for other applications within the PGR that we would design in conjunction with the client. Each case would be carefully assessed to make such rental income tax-free to the greatest extent possible, whilst the mortgages on the client’s primary residence would provide tax relief. We have just created a Cluster effect using the client’s assets to achieve the current PGR whilst ensuring spectacular future wealth growth.

Tax exemption, leveraged fixed income, rigour, maximising returns on everyone Property, etc., are some of the key elements required for certain wealth restructuring strategies aimed at making the most of all available resources to achieve optimal growth and, ultimately, to find happiness through wealth, whatever its scale.

Even though our much-admired Kiyosaki described as liability properties for personal use, and in most cases he is quite right; there are ways to turn them into assets without giving up the right to use and enjoy the property, and even generating a double return on rented properties. And, of course, all this whilst maximising the potential for sustained growth in property values over the medium and long term. If I may Mr Kiyosaki.

Yours sincerely, Global Counsellor y Gurús Mundi.

P.S. We’ve run into trouble with the Church. I have a feeling this post is going to get quite a few comments…