Cluster Family Office Blog

Few people are now unaware that the world is undergoing a complete transformation. But it is doing so with the inertia of an oil tanker; in other words, it is moving at such a pace that the violence and radical nature of the changes may well go unnoticed by many. If we had a time accelerator and could compress a month into a single day, we would see that in just three short weeks we have gone from the placidity of global growth and the proliferation of welfare states to a situation like the one we face today. And with every passing day—that is to say, every month—events are accelerating, leaving behind systems, forms of organisation and dogmas that have been exposed and to which we will never return. Something similar is happening to us to what we said in «The Death of the Frog» with regard to those who have lost money on the stock market. The forces of inertia are so powerful that few people are aware of the major changes we are currently experiencing and their significance.

They have fallen absolute truths as fundamental as confidence, the real estate market, leverage, consumption and economic growth. The solvency and security of banks—and even of states—have crumbled, revealing that many arguments we considered rock-solid are in fact nothing more than a house of cards. Dogmas of the calibre of the inappropriateness of market intervention and the nationalisation of banks—consequences of a neoliberalism that was the very essence of capitalism—have also fallen. The list is as long as it is unimaginable. The fundamental pillars on which we built our economy and our society—the global one—have vanished. We are left with only a few minor pillars still standing, and we will have to decipher the rest through trial and error in the immediate future.

Furthermore, the most visible aspect – the perception on the street and within society – has so far shown only the earliest signs of deterioration. Not even the tip of the iceberg. To date, the most significant changes have been systemic, fundamental and structural. The tsunami is still almost invisible, and yet it is inevitable. The changes that have already taken place are taking us away from the familiar, never to return, and only a few stand by in astonishment as they unfold day after day (or month after month). But for those who are unaware of the change—whether through an inability to analyse the world beyond the day-to-day, or through simple naivety—they need only imagine a snapshot of their life and their assets two years ago and today. And to consider that all around them, in every sphere, changes have also been taking place inexorably.

Change isn't inherently bad, not at all. But we must learn to walk and talk all over again. Throughout this traumatic process, we must also protect our assets. And this is only just the beginning.

I've posted four videos of the genius Bowie with his Changes in very different versions. Same artist, same song. In the same way, the world will remain the world, but with many changes.

For those of us who love this letter, These are unique and truly exciting times.