Campden Research and Union Bank of Switzerland (UBS) published their annual report on the world of family offices this week. A family office is essentially a private wealth management office that handles investments and finances for super-rich individuals and families. Typical client families represented average $1.2 billion in wealth. The boldest headline gleaned from the report is that more than half of the family offices (55%) are preparing for an ‘imminent’ recession. I’ve been itemizing all the potential economic collapse/recession factors that could be responsible for triggering such an undeniable event, for many months now. It appears the super wealthy aren’t concerned with why, but only with when and a majority feel it to be somewhere between now and the end of next year, at the latest.
The report notes that despite many concerns, the current trade conflict between the United States and China is seen as the greatest potential for long term repercussions and even potentially more so in the short term if government egos are allowed to spiral out of control. Regardless of timing, the conflict is slowing the already slowing global economy and more so for the Number One and Two individual economies in the world. Interestingly enough, UBS which is one of the largest wealth managers in the world and has access to the activity and holdings of a huge number of investors is telling a different story to their institution clients. In fact, UBS and other big banks are telling their clients that fears of a global slowdown are ‘overblown.’ It appears to be a global version of Fed speak, aka do as I say, not as I do. Obviously, only one of those scenarios can be true, yet big banks are herding everyone down the road (whether north or south) and will continue to do so until the inevitable reality sets in and either the super rich or average investor potentially become decimated. As usual, banks will be brilliant managers to the surviving group, while the others will just become collateral damage and bank life will go on undaunted with the survivors.
It wasn’t enough that we bailed out banks with taxpayer dollars in 2008. It wasn’t enough that most executives responsible for the debacle were given golden parachutes and sent off to Club Med, instead of Club Fed with Bernie Madoff. No, that was just the beginning. Instead of an AT&T style break-up, we made banks too big to fail. The cherry on top is Dodd Frank. It’s the ultimate slap in the face, because it completely insulates banks from accountability, by giving them the ability to confiscate client deposits, in order to cover their own dangerous and completely irresponsible management practices. Further, our own government put these conditions into play. So if you’re ultimately expecting the government to come to your rescue when the trigger gets pulled, then I’m afraid you’re in for a cataclysmic disappointment, at best.
No, it’s time for investors to fend for themselves. It’s time for investors to realize that gold and other physical precious metals are potentially the best asset protection available. History tells us that. Logic tells us that. And today’s rising but still muted prices are nothing more than a tremendous bonus. Don’t allow yourself or your legacy to become collateral damage in the economic tragedy about to play out. Call the experienced professionals at American Bullion now! Call (800) 653-GOLD (4653).