Bill’s Blog | September 1, 2022
As I have warned many times in my blogs, there are many risks in the global markets (also opportunities), and we see many markets cracking under the severe weight of inflation, debt and social unrest. So I will be brief but cover a few of the most vital things you need to watch and take action on.
- Interest rates will continue to rise for the foreseeable future. This is because central banks cannot stop the destructive inflation they created, but it will slow in the coming months (disinflation) as they deflate asset prices, slow demand and make borrowing more difficult.
- Inflation will likely remain high for several years and in the 4 to 6% range.
- Europe and Britain are in deep trouble with record inflation and soaring energy costs. Many people have become angry due to egregious political energy errors over the last decade! Natural gas costs have exploded over ten times from last year’s pricing. Hydroelectricity and coal costs have become ridiculous, up over 80 to 100% from prior years. On top of this, sizable parts of Europe are facing draught as many rivers are running dry.
- Parts of the USA, Asia, China, Pakistan and Africa are also experiencing devasting floods in some regions and droughts in other areas at historical levels. As a result, a food shortage crisis is emerging in many countries.
- China also faces a real estate/banking crisis, and its destructive lockdown policies have severely crippled its economy and exports. In addition, the world has endured over two years of supply shortages as China is the globe’s largest manufacturer, and I do not see this changing anytime soon. There is also growing tension between the USA and China, further complicating matters.
- Most sectors of the stock markets will experience sizable losses in the year’s final quarter. The crypto markets will follow suit. Gold has held up exceptionally well despite its recent pullback. Silver will always be more volatile but the best-undervalued asset on the planet. In a future blog, I will provide a more detailed assessment of gold and silver. Remember, buy things when they are on sale and unloved. Gold and silver are on sale!
- The geopolitical crisis’ continues to accelerate. The risks remain very high for the future with many hotspots. These trends are troubling, as many global leaders are bent on war rather than diplomacy.
- Finally, I have tried to provide some brief education on cycles in past blogs and why they are essential to understand and help you in financial planning. We have several big cycles emerging simultaneously, so I have encouraged you to take my course to learn as I cover them in the Wealth Foundation Series online course. I will shortly reduce the price in September to $99 CA (incredible value) so more people can learn the foundational principles of growing and protecting your wealth.
- Be defensive with your wealth.
- Track your spending and eliminate unnecessary spending.
- Build up savings.
- Reduce or eliminate debt, as we are in a very challenging season.
- Ensure you are adequately diversified and have experienced persons managing your wealth.
- Keep educating yourself on wealth creation, diversification and management.
- Purchase physical gold and silver to diversify and build a position at these discounted prices.
New Mortgage Referral Partner
Business owners (sole proprietors), real estate investors, commission salespeople, newer immigrants or individuals with poor credit scores often face difficulty getting a mortgage. Recent divorce or credit-challenged can also face challenges in getting financing. I may have a solution for you if you fall into any of the above categories and need help. If you live in BC close to a major centre, please get in touch with me for a brief chat, so I understand your situation.
My new referral partner can help with several solutions.
- Alternative single-family homes
- Prime single-family homes
- Reverse mortgages. Many Canadians do not want to sell their home and have significant home equity but are cash or income poor. My partner is one of the most prominent experts in this field in Canada and provides greater flexibility and better rates than the competition.
So, how does it work? First, reach out to me, and we can do a simple 10 to 15-minute chat to understand your need. Then, once I assess your need, my referral partner will contact you, and they will do the rest. Finally, my lending partner will walk you through a simple 5 step process from initial interview to approval and funding if you qualify.
At Fivefold Financial, my commitment to my clients is to provide education and a wide range of solutions in a very complex world.
All the best,
Bill Westmacott, Owner