Protect Currency Declines with Offshore Real Estate
Mar 8th, 2008 by Kevin
On Friday the Sovereign Society had a interesting article in their A-Letter about currency and economic stability. In the article the author identified 5 factors that build a strong currency:
- little or no involvement in war
- Trade surplus’s instead of deficits
- Rising Interest Rates
- A positive feeling surrounding the countries stock market and other investments
- A central bank that doesn’t debate the local currency
I am sure you are already assessing your own country at this point. For those readers in the US, lets take a quick look at these facts:
- The US has been involved in the War on Terror since 2003. The dollar has fallen 28% since that time.
- In February the US trade deficit was 711.6 B which is 5.1% of GDP. One positive note is that it is falling now for the first time since 2001.
- Rate cuts rate cuts - thats all we hear about these days
- This past week (early march 2008) the Dow fell below 12000 for the first time since 2006
- The housing market continues to track toward some ‘bottom out’ point that we have yet to find
One of the best ways to protect against a falling currency is to invest outside the borders. Offshore real estate is one of those options, and while the value of a company (and its stock) can go to zero, it his very unlikely that land (especially premium real estate) would fall to this fate. Protect your dollars with assets in offshore real estate. That is not to say that you should move everything, but any financial adviser that says your portfolio is appropriately diversified using securities within your borders is trying to maintain their commissions, and not looking out for your best interest.
