While hope emerged during the last couple of months that things are getting better and life returns to normalcy, the current situation shows us that this is most likely not going to happen any time soon. It is very difficult to find good news these days and to anticipate these expectations about the future.
We continue to see a lot of uncertainty around the world. Last Tuesday Russia announced that they have a vaccination to treat coronavirus. However, many countries scrutinize the effectiveness and safety of the vaccination. The main criticism is the fact that the testing period started less than two months ago. We expect that it will take at least until the beginning of next year until a reliable vaccine is available for worldwide distribution. Consequently, international travel restrictions will continue to be in place for a while. Furthermore, we expect that during the months ahead, the volatility of the stock markets will stay high. Depending on the outcome of the Presidential election, this volatility could stay for quite some time into 2021.
COVID-19 was a shock and brought the world to a halt. Newspapers are still focused on the 8.1 million people infected by the virus. However, there are also about 4.5 million people that have recovered. Thinking about the remaining 3.1 million who still are infected, data shows that the symptoms are mild in over 90% of the cases.
European countries are taking steps to reopen the economy and social life. However, at the same time there are still new cases reported in China. CNN’s “Fear & Greed Index” clearly reflects the concerns of a second wave. The historic data from the Spanish flu is enhancing concerns and skeptical thinking. Back then, the second wave was much worse than the first. A second lockdown does not seem to be the solution, since people are already complaining in different regions of the world with some even organizing protest demonstrations. As of now, it is not clear as and when we will go back to a new normalcy.
First and foremost we hope that you and your loved ones are healthy and safe. We currently find ourselves in unprecedented and historic times. In addition to being stressed by the plummet of the stock market, we are all going through personal struggles and the fear of the unknown related to COVID-19. We are worried about the health of our family and friends and have to adapt to working from home while often simultaneously home school our kids. Every aspect of our lives has been turned upside down. We are feeling with you and wish you good health and optimism during these uncertain times!
The current focus is the coronavirus. This virus makes people think back to 2003 when SARS struck China and had a notable impact on the world’s economy. Making things worse since then, China is more inter-twined in the current global value chain and has grown from the world’s sixth-largest economy to the second biggest today.
Switzerland has long been the world’s top offshore financial center. And for good reason. Its sophistication and professionalism are legendary. Plus, it has a distinct history, tradition, and culture that sincerely values privacy, neutrality, and independence.
What a year… We remember well where we found ourselves a year ago and yes, we have to admit that we did not expect markets to have taken off the way they did… It was an eventful year. There were the trade wars, the riots in France, and Brexit. However, no geopolitical hot spot has been able to slow down enthusiasm in the markets.
By using an asset manager outside your own country, you gain a practical degree of financial privacy and asset protection. Since lawyers size up targets for lawsuits by looking for their money, someone considering suing you may decide to find a target with more visible wealth. In addition, a portfolio manager outside your domestic jurisdiction is likely to target different investments than a domestic manager would, leading to a greater investment diversification, and thus greater resiliency in your overall portfolio.
Ted Bauman interviews Jamie Vrijhof-Droese on her new book with Bob Bauman. Bob Bauman's new book is an overview of the many investment opportunities for Americans in Switzerland to add an international diversification component to their investment portfolios. Completely legal and complaint with the SEC to invest offshore in Switzerland. View full video for details!