What's Up With The World? (2)

10 Dec 2024 by rate3

USA - D.O.G.E; China - keeps thinking harder about invading Taiwan; Ukraine - the war moves closer to nuclear warhead deployment; Middle East - calm before a storm; Germany - coalition collapse; France - government almost ousted; Brazil - fiscal crisis; Argentina - Milei's reforms face opposition; S. Korea - president is about to be fired - and all of that just in the past 30 days, and all of it is accompanied by cool, "business-as-usual" commentaries in mass media. Let me tell you that it is not "usual" at all.

In fact, that's the most widely spread heated geopolitical situation of our lifetime. Those who follow me know that in my sporadic publications, I've been commenting on the worldwide generational crisis since 2017, and I'm not alone. Today, there are literally hundreds of accomplished political and economic analysts stating that we're on the verge of a fundamental world turning. I know that 99% of you would disregard that message, again, and it's "normal". In fact, exactly that gives me hope that we still can miraculously land on all four wheels :). So, I'd appeal to the remaining 1% - you'd better be prepared with your portfolios. Rules of thumb: keep taking profits, and preserve at least 30-40% of all your assets in cash.

Of course, with so many things ready to go wrong at the same time, it's impossible to predict what and when "staff" will give way in the world, and how severe the consequences will be as a result. I'm not a proponent of various apocalypse scenarios. I'm sure that the world will sooner or later stabilize in a new shaky balance, as it always has in the past with a regularity of 80-100 years, as one "core" generation of politicians violently changes power with their predecessors. However, from a portfolio management perspective, my message has remained the same over the past three years - Volatility is The King.

So, again, fasten your belts, accumulate cash, be ready to quickly deploy and enjoy the ride if you can :)