Hi, I'm Robert Clarke, the founder and editor of SurviveandProsper.com. If you think the world's economic and financial crisis is over, please think again. Whilst immediate melt-down was avoided through massive intervention by governments and central banks, the problem has simply been transferred from the private to the public sector.
Because of the levels of debt carried by certain countries, there is a real danger of sovereign debt default. And if, or perhaps when, that happens, the world is going to suffer, as confidence will take many years to be restored. After all, countries don't go bust, do they?
Greece, Spain, Ireland, the UK and even the once-mighty US are all way over-borrowed, and just like a person, or a company, when the final credit limit is reached, then there's no more to be had, as lenders back off.
The further risk of sovereign debt default is the return of capital and exchange controls. I well remember when foreign exchange controls operated. The Reagan/Thatcher liberalisation years rolled back the fronteers, liberalised markets and capital flows, and ... well, the result is recent history.
Pendulums have a quirky habit of swinging back and forth, and so as the pendulum starts swinging back to control, we believe there is a real risk that capital and exchange controls will reappear. You have been warned!
Also, be cautious of China. Debt levels there are horrendously high, there is no doubt bank bad debts are huge and soaring (although whether that will be disseminated by the Chinese government is another question), and any setbacks there will have reverberations around the world.
What to do? The first thing is to adopt a global macro approach to your investments. This is a strategy that bases its holdings - such as long and short positions in various equity, fixed income, currency, and futures markets -primarily on overall economic and political views of various countries. By doing this, you also "export" some of your capital before the curtains come down.
How can we help? Initially we intend to provide commentary, news and articles on the key aspects to watch out for in seeking to interpret stock and bond markets, sectors within those markets, and currencies. Later on we may launch a fund or funds to track these interpretations.
At this stage however, you are invited to look around our website, and subscribe to the premium section if you so wish.
In the meantime, please don't hesitate to contact me if you have any questions.