Are your assets protected from the global economic downturn?

Alert! News for Global Entrepreneurs: Nine (9) key countries are on the brink of recession, leading to fears that the US may follow suit.

How will your business be affected?

Are your personal assets protected from this business and the economic crisis?

Argentina: Argentina is in crisis. It is already in recession and seems to be getting worse. Last Monday, August 12, the Argentine stock market fell by almost 50 percent, the second largest collapse on a day that any other nation has experienced since 1950. The country is experiencing accelerated inflation as prices soared. and President Mauricio Macri was defeated in the country’s primary elections. Investors fear that Argentina will not be able to repay its debts, and middle-class Argentines fear that they will not be able to repay daily goods as the value of the Argentine peso continues to fall, especially against the US dollar.

Singapore: The Asian nation reported on Tuesday that its economy contracted by 3.3 percent in the second quarter, a sharp reversal of growth of more than 3 percent in the first quarter. Singapore has accused the US-China trade war of causing many of its problems as its economy is heavily dependent on exports. Many economists look at Singapore and South Korea as strong indicators of what is to come in the global economy because these countries are negotiating with so many others, especially China and the United States.

South Korea: South Korea managed to avert a recession in the first half of the year – for a little while. South Korea’s economy shrank 0.4 percent in the first quarter, but rose 1.1 percent in the second quarter, a better-than-expected performance, which many experts do not believe will last long. Japan and South Korea are also in the midst of a trade war that is expected to slow growth and make it difficult to sell electronics and cars to South Korea. The South Korean central bank has lowered interest rates but is not Of course that will be enough. Electronics exports have fallen about 20% in recent months, and semiconductor exports have fallen more than 30%, according to ING.

Is your personal property really protected against this economic and commercial recession?

Russia: A Russian economic institute announced last week that Russia could be in recession by the end of the year after growing a modest 0.7% in the first half of 2019. Russia has been struggling since 2014, when prices oil prices fell and other nations imposed sanctions because of Russian military actions in Ukraine. Russia has been working to protect its economy as much as possible from US government sanctions by limiting deals with the United States and negotiating in US dollars, but that has meant greater dependence on China, which is now slowing down. Russia also tried to increase its government cash reserves, which left little money for a stimulus.

The US economy is primarily a service economy, which fuels domestic demand, which provides some isolation from problems abroad. But there are limits to this isolation. As other countries falter, global investors are increasingly buying US Treasury bonds, causing the yield curve to reverse in the United States, a warning sign of recession, also reminding that there are ways of overflowing. panic abroad.

“There is potential for a US recession, not because of the yield curve itself, but because of the madness of trade policy and the damage it is causing,” said Ian Shepherdson, chief economist at Pantheon Macroeconomics.

So here is the bottom line. Now is the time to protect your personal assets against business risks resulting from an economic crisis.

If you have not established an Offshore Asset Protection Trust, now is the time.

To learn more about Global Asset Protection, contact us.