PROTECTION AND WEALTH BUILDING STRATEGIES 2012015 and this writing we saw four rate cuts: from Denmark
alone, and other cuts from Canada and Australia. Go around
the world and you’ll see they’re popping up everywhere. And I
think more are on the way.
I would expect another rate cut from Canada, and I think
we’ll see this continue as the currency wars rage on. And you
can expect an even bigger announcement out of China. China
hasn’t cut rates since last November.
They’ve only adjusted what they call their reserve require-
ment ratio. That’s how much in reserves they have to hold
against their loan portfolio. They reduced it meaning they
can expand lending with the same amount of reserves. It was
meant as a form of easing.
China’s growth is still coming in below our expectations, so
I would look for a rate cut there. You still have these phenom-
ena where every country in the world, including the European
Central Bank, is easing — using quantitative easing, cutting
rates, working around the edges to cheapen their currencies.
All of that weight of adjustment is falling on the dollar, which
continues to get strong, or at least maintains its strength at a
very high level, which is, as we’ve said before, deflationary.
You should be nimble and prepare for both inflation and
deflation. Your initial portfolio should have gold, fine art, raw
land, cash, bonds, select stocks and some alternatives in strate-
gies like global macro hedge funds and venture capital. Not all
of those strategies will pay off in every scenario but some will
do well enough to outperform others and preserve your wealth
in the overall portfolio.
■ “indications and Warnings”
There are investment techniques that I’ve learned working for
the national security and intelligence communities that you
can apply to understand the capital markets.