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The global economy’s warning lights are flashing red…
Zero Hedge reports the Baltic Dry Index just broke to all-time lows. The index is a popular bellwether for the health of the global economy. It drops when shipping supply is high and demand is low.
And shipping rates have just sunk to unprecedented levels…
Reuters reports shipping rates for Asia to Northern Europe have crashed 70% in the last three weeks.
The Asia-Europe route is the world’s busiest… yet rates have sunk almost 100% further than the index’s 30-year average for this time of year.
The last time a divergence this large arose was in 2008… as the world entered the Great Recession.
The data won’t scare longtime PBRG subscribers. That’s because they’ve followed our rigid risk-management protocol: the Palm Beach Three-Legged Stool of Safety.
They’ve diversified their wealth across seven major asset classes… which provides “sleep-at-night” security.
If their equity portfolio drops, their cash holdings will gain in value. A crash in bonds may see the value of their gold increase. They’re hedged against any economic uncertainty.
But there’s also an additional safety measure in the Palm Beach arsenal…
It provides safe, high yield—with almost zero risk of capital loss—regardless of what happens to global shipping… or to interest rates… or with global terrorism… or with almost any other calamity you can imagine.
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Recommended Link Why Two Men Bet $3.03 Billion… Two billionaires recently made huge bets on a single stock.
The first, one of the 20 richest people in the United States, put $1.33 billion down. The second, a man who literally wrote the book on safety, put in even more… $1.7 billion. Why are they so confident? In short, because this company is set to do something nobody has ever done in the history of the markets. Here’s the full story. |