The Rich Are Feeling A Lot Less Rich…” Come Monday you’ll tell your people to sell some stocks. No, a lot of stocks. Cash may yield next to nothing, but at least it won’t go the way of Petrobras or Glencore.”
by John Rubino
DollarCollapse.com
January 24, 2016
Pretend for a minute that you’re a member in good standing of the 1%, with a net worth in the tens of millions of dollars. You aren’t deeply involved in the management of this money, but your financial advisers are heavy hitters and they’ve diversified you appropriately. You’ve got equity stakes in most major and several minor markets. You own three or four trophy properties including a flat in a hot section of London. You also have the obligatory pieces of mid-range “fine art” and, for stability, a generous helping of US, European and Japanese government bonds.
For the past few years you’ve felt extremely smart. Your stocks and bonds went up while your real estate and art surged, giving you millions in new paper profits with every quarterly report.
But something happened towards the end of 2015. Your emerging-market funds went down and your developed-world equities stopped rising. And a couple of hedge funds in which you’ve invested reported losses rather than their customary gains.
Nothing to worry about, said your advisers. When one asset class like equities takes a breather, others like real estate and art go up to compensate. Money, after all, has to go somewhere.
But now it’s 2016 and your stocks are cratering (the papers say it’s the worst start to a year ever), with the oil companies whose dividends you were assured were rock-solid standing out among the losers. Looking for a little reassurance, you pick up a Wall Street Journal and the first thing you see is:
Red-Hot Property Markets Cool as Rich Investors Retrench
The Rest…HERE
