Fears of a global recession grow as the corona virus surges on with the market experiencing a downward spiral six days in a row. $3.4 trillion dollars was wiped out of the market- making any gains for this year unlikely. Most financial analysts are warning that the corona virus is unlikely to just be a “blip” in the market and could very well be a global economic nightmare. In an article by ThinkAdvisor entitled, “Coronavirus May Not Be Mere ‘Blip’ in Markets: Northern Trust,” Ginger Szala interviews Bob Browne, Chief Investment Officer of Northern Trust, on the potential impact and factors of the virus:
Global Tourism-Second Largest Economy
Unlike a geopolitical event that can pass through the public quickly, Browne states, …”the virus is different because it’s affecting the second largest economy in the world.” Global tourism is 10% of world GDP, and downstream that affects casinos, airlines and cruise ships as well as suppliers [ThinkAdvisor]. Tourism in France has already dropped by about 30 to 40% since the outbreak began. Tourism could also snowball into a negative effect on consumerism if the virus persists.
Ties to China-The World’s Factory & a Shaky Relationship
Apple has already announced that it would fall short of quarterly revenue expectations due to the virus.
And it’s not just Apple! Lest we forget, we’ve included just a few of the hundreds of major American companies that have manufacturing and rely on the supply chain in China and whose revenue will see a significant decrease because of the virus:
Johnson & Johnson
Proctor & Gamble
Walt Disney Company
Not to mention the irreconcilable differences between China and the United States. Browne comments, “At best we will achieve an equilibrium of each country viewing the other as a strategic competitor. And the worst-case scenario is they view themselves as strategic threats to one another. It’s a multi-year process that will sway back and forth. But we’re not strategic allies, that’s been revealed. And we’re not cooperative trading partners.”
The Democractic presidential nominee will also have an affect on the stock market.
“There’s probably going to be a pretty significant shift in asset prices and flows as people try to game out who [asset wise] the winners and losers will be of a potential Sanders presidency. Until then it will continue to be a volatile market. It’s really risky to be prematurely bearish.” Browne concludes.
Time to Roll Before You Go Bust?
We’re no stranger to the roulette table at Caesars and we can’t help but see a comparison with the stock market. The market has been hitting all the right numbers and has been on a heater-but is it time to roll before you go bust? Maybe you want to stay in the game? Maybe you want to stash some away, just in case, and continue playing with the rest?
Diversification is key in recession proofing your portfolio. If you are thinking about diversifying by cashing out a portion of your IRA funds, Lasaii Benefits offers the perfect alternative solution for your portfolio with our IRA Real Estate to Occupy program:
Apart from asset protection and the intrinsic value of occupancy of real estate purchased with the help of an IRA, the SHIRA™ also offers:
POTENTIAL INTEREST EARNINGS
POSSIBLE APPRECIATION OF REAL EsTATE
Step Up In Basis/1031 Exchange
Tax Write-offs (If you Qualify)
Diversification of Portfolio
At Lasaii Benefits, we disprove the believe that low risk=low return. Just because your monies are not invested in the stock market doesn’t mean you can’t get yearly returns that are equal to or competitive to those of the stock market:
The Perfect Alternative Investment
With the protection and possible interest earnings of the SHIRA™, the potential appreciation of the real estate, rental income, and the intrinsic value of occupancy, together with the tax write-offs (if you qualify); the total value and benefits of the SHIRA™ and the real estate could be, and has been, in the double digits. In other words, the perfect alternative investment.
We specialize in helping clients structure customized, tax effective IRA real estate investments that enhance their portfolios, lifestyles, market positions, and legacies.
Please share this with friends and family that could benefit from our proprietary IRA real estate structure!
Visit www.lasaiibenefits.com to sign up to receive our “Understanding the SAFE HARBOR®-Directed IRA™” Guide to learn more.