Geo-Political and Financial Repression Risks on the Rise
Investing in today's environment requires risk mitigation and risk management - we explain how we use our Live Risk Table in our investing process
Investing in today’s environment is not just about assessing market risks and credit risks. We have developed a Live Risk Table - link here - a continually updated spreadsheet matrix that identifies and assesses geopolitical risks and financial repression globally. Updated weekly and accessible to the public, this tool provides us a birds-eye view of threats varying in level and likelihood, helping us as investors stay ahead of potential disruptions. Here are some of the these risks:
Nationalization of businesses or properties by a country, where the government takes control or ownership away from private companies, organizations or individuals.
Expropriation or freezing of assets, effectively not being able to use, sell, transfer or exchange securities or assets or currencies.
Imposition of new industry-specific regulations, forcing retail investors or institutions to buy more government bonds for whatever reason to maintain compliance for whatever reason.
Commodity export bans, prohibiting like grains or strategic metals or energy commodities out of the country.
Changes in rules governing retirement accounts like 401(k)s, RRSPs, and Superannuation, like forcing accounts to buy certain % of government bonds which may be losing purchasing power or capital value or even losing all value through outright default
Regional conflicts or wars impacting economies and markets.
Capital Controls and Exchange Controls, prohibiting wire transfers out of countries or wire transfers to certain countries.
Repressed Interest Rates by Central Banks, distorting risks in securities and assets.
Rising inflation and a depreciating purchasing power of the currency, lowering the real-terms value of securities and assets.
Our podcast partner program show - The Roundtable Insight - is interviewing some of the best geo-political analysts in the industry. Here is this week’s podcast with Tom Luongo and Yra Harris below. Next week planning to do a podcast with Rabobank’s Michael Every and Yra Harris. Enjoy!
How are we risk mitigating and risk managing the geo-political risks and financial repression risks? The Live Risk Table gives some insights - in addition, we provide an integrated view of the ten Most Admired Advisors (MAAs) we follow on their risk mitigation and risk management strategies and investment ideas, and we like to invest in our CedarOwl Portfolio, an income-focused portfolio of great businesses from around the world that meet our investment qualification criteria. Both the MAA Report and the CedarOwl Portfolio are available to paid subscriber - subscribe today to our monthly updates on the MAAs and the CedarOwl Portfolio.
CedarOwl Portfolio - our actively managed portfolio of equities. We manage the portfolio to help target the following objectives:
Generating Portfolio Financial Outperformance
Income Generation
Minimizing Geo-Political Risks per our Geo-Political Risk Table
Helping Society and the Environment