The Wealth Bulletin is a newsletter written by Roger Coleman. He works for the Coors Investor’s Network. His articles are focused on the political environment and world situation that affect wealth. You can find an article about the upcoming European debt crisis.
The Financial Times Magazine asked him, “How do you see the global economic recovery playing out?” His answer was, “If anything, it will get worse.” The Financial Times referred to Mr. Coleman as “a former economic adviser to Tony Blair and Gordon Brown”. He is now a senior fellow at the Institute of Fiscal Responsibility and he is writing a book on the subject.
In his current job, Mr. Coleman is analyzing the reaction of central banks in different countries to different economic scenarios. In an article for the Financial Times Magazine, he explained that some central banks have tried to keep interest rates low to help economic recovery. In other cases, the banks have bought large chunks of government bonds to raise money. When this process begins, it can create inflation, which is a risk for asset prices.
What does all this mean for you as an investor? It means you might want to hold off on some investments right now. For example, the political upheaval in Iran might cause the dollar to lose value or the ruble to depreciate. Both these factors, plus the risk of war and inflation in the Middle East, could lead to a rapid loss of value in the U.S. dollar and a worldwide crisis.
On the flip side, the financial system in China is starting to thaw out after years of record-breaking economic growth. That growth has been fueled by government stimulus programs and higher rates of personal debt. A healthy economy backed by cheap labor and consumer spending power is a great source of strength for the American economy. Now might be a good time to get into the game.
If you’ve been thinking about buying stocks, bonds, or mutual funds, now’s a good time to do so. You might think that because the world is still recovering from the mortgage crisis, there’s no room here. The fact is that even if the U.S. economy was as strong as it was in the past, there are still many risks to consider. The political situation in the U.S. has a lot to do with that risk. Political risks create volatility that can send even the strongest companies down the toilet.
A great company might also go under, creating mass panic. There are certainly other factors at work. If you don’t feel comfortable putting your money in the stock market, there are other places to put it. You might also look at real estate, gold, commodities, and options. In fact, you might also look into hedge funds.
So, how will political risks affect you? There’s no way to predict exactly what will happen in any given situation. That being said, there are many things that you can do to minimize your risk of losing your money, even if you think the chances are high. The best thing you can do for now is take a look at the contents of the new issue of the Wealth Bulletin. It’s an easy to read guide that gives you everything you need to know, no matter how you decide to invest your money.
The newsletter covers everything from the ups and downs of the stock market to the risks of investing in forex, bonds, commodities, and the financial industry. If you’re worried about how will political risks affect your investments, you’ll be happy to know that the newsletter’s author, Robert Keeble, isn’t afraid to address those risks head on. For example, he discusses the possibility of the Chinese government backing out of their commitment to buying more U.S. debt. It seems unlikely, but experts have discussed this possibility for years. In his newsletter, he doesn’t wave the white flag, but offers up some reasons for concern.
For instance, how will this affect commodity prices? How will this affect interest rates? What will happen to the dollar? Does this mean that the U.S. might default on its debt? All these questions are addressed and discussed in this particular newsletter.
Indeed, how will political risks influence your portfolio is an interesting question. You can learn a lot from the newsletter, as well as from other experts in the field. If you have some concerns about how will the political risks impact your investments, you should subscribe to this particular newsletter.