investing-in-a-world-of-geopolitical-uncertainty

Investing in a World of Geopolitical Uncertainty

Americans think in decades, Europeans plan for centuries.

Investing in a World of Geopolitical Uncertainty

Americans think in decades, Europeans plan for centuries.

The return of war in Europe, a flare up of tensions in the Taiwan Strait, extreme polarization on both ends of the political spectrum taking hold in capitals across South America, the enduring reign of tribalism threatening economic stability in Sub-Saharan Africa and the unending dysfunction of the Middle East.

The fabric of economic globalization and the international structures of governance set up in the aftermath of the Second World War are being torn asunder. An increasingly volatile geopolitical schism is shifting the axises of power across the globe. The specter of hyper-inflation and recession lurks around every corner.

How should investors navigate the shifting sands of geopolitical realignment in a multipolar world?

Think like the multigenerational dynastic families of Europe.

“This type of wealth has survived not only business cycles but also war, invasion, the collapse of empires, revolution, and natural disaster. In order for family wealth to persist through so many centuries and through such adversity, something more is needed than ordinary investment skill. This rare kind of success in wealth preservation requires a longer view, infused with a sense of history and a keen appreciation for worst-case scenarios that too frequently become real. 

When one inquires of family members and representatives as to what it takes to preserve wealth over centuries and not just cycles, the frequent reply is ‘a third, a third, and a third.’

This is shorthand for dividing one’s wealth into one-third land, one-third gold, and one-third fine art. Obviously some liquidity is needed for day-to-day expenses and some room can be made for a speculative portfolio, but the basic idea that land, gold, and art outlast and outperform riskier assets such as stocks, bonds, and cash seems sound when viewed from the perspective of centuries and not just years or decades.”

– James Rickards, a hedge fund manager in New York City, and author of Currency Wars: The Making of the Next Global Crisis.

To learn more about protecting your assets in today’s global economy, check out our episode on The Capital Club Podcast.

Previous Articles

the-ultimate-guide-to-commercial-real-estate-investing

The Ultimate Guide to Commercial Real Estate Investing

Learn everything you need to know to assess the benefits of a commercial real estate investment and make the best decisions to get started.

Why Industrial Outdoor Storage IOS Is the Next Big Trend in Commercial Real Estate

Why Industrial Outdoor Storage (IOS) Is the Next Big Trend in Commercial Real Estate

The Industrial Outdoor Storage (IOS) asset class has rapidly emerged as a key player in 2024. With a market valuation of $200 billion…

Does Real Estate Deserve a Larger Role in the Ideal Future Portfolio

Does Real Estate Deserve a Larger Role in the Ideal Future Portfolio?

Investors should be prepared for equity returns during the next decade that are towards the lower end of their typical performance distribution relative to bonds and inflation.

Understanding Common Real Estate Investment Structures

Understanding Common Real Estate Investment Structures

A Guide for Accredited Investors. Explore some of the most common real estate investment structures and how they work.

Commercial Real Estate: Key Investment Performance Metrics

Commercial Real Estate: Key Investment Performance Metrics

In this guide, we’ll break down some of the most common terms to know so you can feel confident going into your next investment.

Are Medical Office Buildings A Good Investment

Are Medical Office Buildings A Good Investment?

Here are a few key considerations that highlight why a medical office building could be a solid choice.

Stabilized or Value-Add Investments

Stabilized or Value-Add Investments: Which Strategy Is Right For You?

For real estate investors, distinguishing between the strategies of stabilized and value-add investments can mean the difference between…

Q1 2024 commercial real estate market update

Q1 2024 Commercial Real Estate Market Update

While we’re encouraged and cautiously optimistic about 2024, we see economic data implicating some near-term uncertainty as the Fed tries to moderate growth.

Tax Planning For Real Estate Investors

Tax Planning Tips for Real Estate Investors

Investing in commercial real estate offers numerous advantages, with a significant one being the potential for substantial tax benefits.

Excelsior Capital

A real estate private equity firm that owns and operates high quality multi-tenant office assets in emerging secondary markets.

Interested in learning more about Excelsior's investment opportunities?

Excelsior Capital

104 Woodmont Blvd, Suite 120
Nashville, TN 37205

investors@excelsiorgp.com

Disclaimer: Under no circumstances should any information presented on this website be construed as an offer to sell, or solicitation of an offer to purchase any securities or other investments. This website does not contain the information that an investor should consider or evaluate to make a potential investment. Other materials related to investments in entities managed by Excelsior Capital are not available to the general public.

Share This