Global Reset is Upon Us

January 6, 2014

By: Bobby Casey, GWP Managing Director

My 14 year-old son and I went to see the movie, “Snowpiercer” this past weekend.  It was a very thought-provoking movie: something very different from anything else I’ve ever seen.  I won’t spoil it, but if you are looking for a futuristic dystopia film, this certainly fits the bill.

Has anyone else noticed the recent end-of-the-world movies over the past few years?  Take a look:

• Snowpiercer 2013
• Thor: The Dark World 2013
• This is the End 2013
• The Croods 2013
• Eve of Destruction 2013
• Children of a Darker Dawn 2013
• Seeking a Friend for the End of the World 2012
• It’s a Disaster 2013
• Revolution Road: The Beginning of the End 2012
• End: CIV – Resist or Die 2011
• Collision Earth 2011
• 4:44 Last Day on Earth 2011
• The Day
• Missed the Calling 2011
• The Collapsed 2011
• and on and on

These are just the ones I could look up in a few minutes using Google.  You can find an entire Wikipedia page dedicated to this topic here.

My point is, pop culture is reflecting the mood of the populace.  People are unhappy.  Dissatisfied.  And sick of the status quo.

As well they should be.  But the current state of affairs needn’t be a cause for worry.  You see it’s a matter of perception.  In my view, where turmoil persists, opportunity exists.

First of all, let me be clear.  I am NOT a Gloom-and-Doomer.  I am not a “prepper” stocking my bunker shelves with food, water and ammo expecting the zombie apocalypse to engulf us all.

I am an entrepreneur and investor.  I am an opportunist.

To recap 2013, we have seen a lot of nonsense as well as warning signs that a global financial crisis of sorts is upon us. 

• Poland nationalized private pensions
• The Fed printed $85B per month in fresh money (cut to $75B at the last FOMC)
• Cyprus wiped out billions in bank accounts (while the elite were given ample warning)
• Italy increased capital controls
• Argentina increased capital controls
• The French passed a 75% millionaire tax
• China and Russia now conduct trading in RMB
• Turkey is buying oil from Iran and paying in Gold
• Bitcoin went from $15 to $1000 in one year
• US median income declined by 8.5% over the past 5 years
• Lowest workforce participation rate in history
• Obamacare has been an utter disgrace and disaster

Meanwhile…..

• The S&P500 was up 29.6% for 2013
• The 300 wealthiest people in the world saw an increase of $3.7T in wealth 
• Police are given 2 weeks without pay for beating and raping citizens
• Politicians are applauded for saving the economy
• The Fed balance sheet increased 39% for 2013
• And the sheeple just nod and accept…

The world is a crazy place.  Something has to change.  We cannot continue on this unsustainable path for much longer.  It just cannot go on.  But like I said before, where turmoil persists, opportunity exists.

And opportunity is everywhere.  During my travels, I always see business and investment opportunities.   I typically travel 2 weeks every month speaking at events, researching investment opportunities, meeting with clients, and getting boots-on-the-ground exposure to what I feel to be areas of interest for me and my clients. 

Later this month, I will be traveling to Portugal to look at coastal real estate.  Portugal is an excellent example and is cheap right now.  I am looking at very nice apartments in the EUR1,000/m2 price range (USD130/ft2).  That is very cheap for coastal properties in resort towns. 

You can buy coastal apartments for around EUR100,000.  The area I am looking at is a vacation hub and you can easily get EUR150/night for these 2-3 bedroom apartments.  If you rent this apartment out for 100 nights per year, that gives you a 15% gross cap rate.  It should easily generate a 10% net cash yield.  And that is only if you rent it for one-third of the year. 

Immediately following Portugal, I will be speaking at ‘Passport to Freedom‘ in Las Vegas from January 23-25 (there are still a couple of tickets left – click here to register).  There, I will speak to the group about internationalization and how to properly use offshore trusts for asset protection and estate planning, as well as participate in a couple of panels about offshore living and investments.  I will also have the opportunity to meet with a small number of consulting clients one-on-one.

After that event, I will be doing a private investment tour in Anguilla from January 29 – February 1 for 10 GWP Insiders (if you are not a member, click here to sign up for GWP Insiders and the event page will be on the top right).  If you are serious about internationalizing your life and your assets, this event is capped at 10 people and we will be able to openly discuss your situation and how to best structure your own personal plan. 

There is one property in Anguilla that, for USD250,000, you can have a 10% share of a 10 unit ocean front villa.  You get to personally use one of the units for 3 months per year and collect the rental income.  As a turn-key project the net cash yield is conservatively estimated at 7%.  And keep in mind, you can stay there for 3 months!

Personally, I am looking at buying an apartment for myself in Portugal as well as the villa in Anguilla.  I am also looking at other real estate opportunities in Latvia and Lithuania.  My stock portfolio is moving more and more conservative with large cap dividend payers.  My savings are going into precious metals and a basket of foreign currencies.  My businesses are all virtual with team members and partners all over the world. 

These end-of-the-world movies reflect the general population’s gloomy outlook, and sure it can be easy to slip into that vacuum, but I urge you to buck the trend, get out of your comfort zone and explore the world!  The opportunities are out there…