Political Diversification Of Property

Hey Jessocial issues

As the world seemingly continues to lose their minds, the risk curve for owning anything has gone up considerably over the last few months. As banks are coming under pressure from insolvency as well as governments around the world, any property you own that can be tied or custodied with them can be under threat of devaluation or worse loss or confiscation.

None of us has any idea of how bad this could get nor which countries and banks will do what should things fall into chaos.

We've seen this all before

If you think your property has value, ask anyone who lived in a country where wars broke out. If you feel your money has value, ask anyone who lived in Zimbabwe. If you think your money is safe, ask anyone who lived in Cyprus or Greece during their economic crisis.

If you think your pensions are secured, ask anyone living in Iceland what happened to theirs. Yes they seem like unrelated incidents, and if it didn't affect you, you probably don't care, but a lot of those people didn't have a clue it was going to happen.

They went to work, obeyed the law, paid their taxes, played by the rules and still got screwed.

Single point of failure

What these incidents show us is that being a good and productive citizen of any country is not a guarantee that you will be saved and you need to spread your risk. You cannot simply believe holding property or money all in one country is a wise choice.

Since you're banking on the solvency of one government or one bank, you tied to whatever decisions they make and have little control should things go belly up.

Me for example, I don't trust our government one bit, I hold dollars and euros and of course cryptocurrency. Yes, I still have locally denominated assets I took out many years ago and would be hurt if they are lost, but it wouldn't be my only source of wealth.

Find a risk portfolio that works for you

I am not a financial advisor, but I do think people should invest in what they know, and they are comfortable with using. If you like real estate, perhaps you should get a second property in another country and turn it into a cash flow project in the meantime.

If you like stocks, perhaps its time to invest in companies outside your country.
If you prefer cash, why I don't know but if you do, maybe some forex would be a good idea for you.
If you don't want to be tied to custodial services, perhaps crypto is where you diversify.
If you're afraid of lockdown rules for you or your business, perhaps its time to work online and go borderless or get a second passport.

Have your say

What do you good people of HIVE think? Are you diversified politically?

So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."

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