Investing is not what it used to be. LB Now firmly believes that we are in the midst of a global systemic crisis. What percolated in 2007 as a credit crisis in the US, then morphed into a near collapse of the global financial system in 2008 and more recently manifested as a sovereign debt crisis in Europe, is far from over. The landmark year was 1971, when gold was exiled from the monetary system and thereby prevented from discharging its natural function as the ultimate extinguisher of debt ever since.
Central banks are now engaged in a desperate battle against a systemic collapse as a consequence. There is a direct cause and effect relationship between that event in 1971 and the present global financial disorder. Central banks continue to defy the inevitable with seemingly endless additional ‘liquidity’ to hold back the latent losses in the bloated credit system. The result is monetary disorder and currency wars.
Currencies are fast becoming less and less reliable measures of value, making it highly problematic for investors to invest, as inevitably all investments are denominated in one or another currency. In other words, to invest now is to be fully exposed to the systemic risk in currencies. Indeed, LB Now believes it is now prudent for investors to take some money ‘off the table’ and not be fully invested. Failing that, investors remain fully exposed to the ongoing debasement of currencies by central banks.
LB Now believes investors should at least put some money aside, outside the system, and wait until the debasement of fiat currencies is over before redeploying that money for investment again. How much money to set aside now varies and necessarily depends on client circumstances, needs, preferences and risk tolerance. Irrespective of those differences however, LB Now’s strategic advice to all clients is to maintain two portfolios:
- an Investment Portfolio, broadly allocated between financial assets (equities, bonds, commodities and other alternatives); and
- a Bullion Portfolio, consisting of London Good Delivery gold and silver bullion bars held in allocated and insured storage.
LB Now investment services are available only to wholesale clients, as set out in section 5C of the Financial Advisers Act 2008. Services range from ad hoc strategic investment advice, such as undertaking independent reviews and providing opinions on existing strategies, to providing more comprehensive and ongoing advisory services including investment policy and objectives, portfolio construction, implementation, performance monitoring and evaluation.