“I just sent my first WhatsApp voice note…and I think I broke it.”
This was the message I posted into one of our group Slack channels on Monday afternoon.
Turns out, WhatsApp was broken…and Facebook and Instagram too. Unless you live under a rock, you’ll have heard that all these Facebook-owned platforms went offline for almost 6 hours on Monday (thankfully it had nothing to do with me and my voice note).
The result…millions of people around the world couldn’t access their accounts, whether for business or just endless scrolling.
And over on the stock market, it contributed to Facebook’s share price plummeting almost 5%. In case that doesn’t sound like a lot, it equates to almost $6 BILLION dollars that was wiped off Mark Zuckerberg’s personal fortune!
This is not the first time in recent weeks that stocks have tanked…and these two news-worthy events have just served to remind me why it is that I don’t invest in stocks.
Last week, Wall Street analysts were quick to blame Chinese real estate firm Evergrande for yet another market downturn, and seemingly any future crisis too, by comparing Evergrande to Lehman Brothers (the scapegoat for the 2008 crisis).
But why would Twitter Inc. or “meme stock” GameStop Corp. also tank because a Chinese real estate firm has too much debt?
Fact is, Evergrande isn’t going to be the cause, but a symptom of what’s coming…
In 2020, worldwide corporate debt soared 10% to $13.5 trillion…
When companies can’t do business because of economic shutdowns, and the cost to borrow is at record lows, more debt is the obvious result.
But now, the House of Cards is bigger and more unstable than ever.
Exactly when it falls is anyone’s guess. But I’m not losing any sleep over it.
In fact, when the next crash comes, my life will carry on pretty much as normal.
I’ll wake to sound of birds chirping. I got rid of my alarm clock a long time ago.
Then I’ll sit out on my balcony overlooking the sea and write a few things, like this email to you.
In the afternoon, I’ll be playing golf.
You see, I’ve designed my investment portfolio so it can withstand systematic shocks in the U.S. or China or anywhere else.
When the next crash comes, I might even get a little richer, too.
Diversify or Die!
As a global real estate investor, my investment risk is spread across countries and continents.
As you probably know, I own investment properties in six countries, catering to multiple markets and paying me in a combination of rental income and capital appreciation.
Think of it like fishing with 10 lines in the water. If one line breaks, or even five, I’ll still eat. I’m not dependent on one fishing hole, either. I can go wherever the fish are biting.
You see, what happens in the U.S. or China doesn’t affect every single country in the same way…
Large trading partners might struggle, but some countries carry on like nothing has happened, and other countries can even boom (to quote TV’s Jim Cramer, “there’s always a bull market somewhere!”).
That’s why, during the financial crisis of 2008, I didn’t lose money. In fact, I actually got a little richer.
For example, though the media called the financial crisis of 2008 “global,” no-one told tiny Panama…
And as real estate was crashing in the U.S. and elsewhere, I was making a fast fortune investing in Panama, and investing in fast-appreciating real estate in northeast Brazil.
When the next crisis happens, there’ll be similar opportunities around the world. The chance to make up for losses, and even turn a profit.
And with the shaky economy in the U.S. right now, there’s perhaps never been a more urgent time to move a portion of your wealth elsewhere. Buying real estate overseas is a lot easier than you think, too.
The key, of course, is knowing where to invest…
The Best Alternative to a Crystal Ball?
I like to always remind readers that I don’t have a crystal ball and I can’t predict the future. There’s no such thing as a sure thing. Instead, I try and stack the deck in my favor by gathering as much intel as possible.
I spend six months of the year scouting real estate opportunities around the world. That’s just me, personally. I have several team members doing the same, and dozens of local insiders on speed dial. Collectively, we spend well over $1 million on travel and research every year.
It’s like a global network of real estate spies. The CIA would be jealous.
With all that intel and boots on the ground experience, I’m able to make well-educated guesses on where the next opportunity is.
In short, crises create opportunities all over the world. And when the next one comes, I’ll be looking for them for myself and members of my Real Estate Trend Alert group.
If, like me, you’re interested in a solid, non-global-outage-affecting investment, being part of my RETA group is the place to be. It where I share the best real estate opportunities me and my team uncover. As a member, you’ll get all my insights, research, and intel on the best places around the world to invest in international real estate.
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