Over the past few decades, we’ve witnessed an unprecedented global economic expansion.
From the tech boom to rising stock markets, investors have largely thrived. But beneath the surface, there are growing concerns that could spell trouble for wealth preservation.
Central banks, especially the Federal Reserve, have printed massive amounts of money, increasing global liquidity to fight recessions and downturns.
While this may have prevented short-term crises, it has also created the potential for long-term problems. Inflation, once considered a relic of the past, has started to rear its head again.
From the price of everyday goods to the cost of housing, we are seeing that currency devaluation is not just a problem in struggling nations but something developed economies are grappling with, too.
When trillions of dollars are printed out of thin air, it dilutes the value of every dollar already in existence.
For those of us sitting on large amounts of cash, the purchasing power of our money is eroding faster than ever before. On top of this, geopolitical instability is adding fuel to the fire.
Whether it’s trade tensions between global superpowers, regional conflicts, or the rise of populism and protectionism, investors need to ask themselves: How safe are the traditional investments we have relied on for decades?
The global economy is entering a period of uncertainty. Smart investors need to think beyond traditional assets and consider ways to hedge against the potential of devaluing currencies and systemic instability.
