MB Fund Podcast: Why it’s time to move assets offshore

In today’s investment webinar, MB Fund’s Chief Strategist David Llewellyn Smith, Head of Investments Damien Klassen, and Head of Advice Tim Fuller discuss why it’s time to move assets offshore

Following the Great Pandemic of 2020, the global economy is entering a robust recovery. This new business cycle is not like those that have come after the previous two crises, the Global Financial Crisis and Tech Wreck. Those two crashes were led by the US and the recoveries led by China. This time around, the crisis was led by China and the recovery will be led by the US.

The difference is crucial to asset returns over the coming cycle. Aggregate global growth may appear to be the same at the headline level, but with the US the growth engine and China the caboose, the range and order of asset cars arrayed between them will be very different. So will be the returns for each.

Moreover, these cyclical forces will further be buffeted by epochal shifts in structural forces shaping the global economy which have, if anything, changed even more dramatically in the past few years.

What this means is that now is the time for investors to abandon Australia for global assets.

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Tim Fuller is Head of Advice at the MacroBusiness Fund, which is powered by Nucleus Wealth.

 

Tim Fuller

Comments

  1. Tim FullerMEMBER

    Our viewer question of the week:
    Where do you go for reliable international exposure?

    • My guess is the Un-China peripheral nations who’ll benefit from the trade war.

      Generally SE-Asia, but also potentially other ‘developing’ nations.

  2. MathiasMEMBER

    In previous crashes, something would fall and you could just reposition your money into something else to survive it.

    Sounds like this is going to be the crash of all crashes. Nothing will escape it. Nothing will survive. I mean, sure, you can reposition into US currency to escape crashing dollars in world markets but I would guess volatility is going to be fairly extreme. If you guys are saying China owns Commodities, then Gold/Silver/Platinum is basically dead.

    While I was out in the garden planting a tree, I began to think how this Tree produces fruit. It occurred to me that someday, that fruit might be more valuable then Australian Dollars themselves, which slowly but surely, are starting to become worthless. For a while, I’ve been thinking the Aussie Dollars are practically dead.

    If you guys are right and AUDUSD hits 30 cents, then holy cow. With interest rates at 0.10%, thats a helluva hit. That’ll whack Aussie Currency so hard that Im guessing toilet paper will be worth more then Australian Dollars.

    I dont think the US stockmarket is all that stable. Invest in US War? Lockhead and Martin? Funeral Homes? Renewables and Agriculture?

    The only thing I can see coming is self-sufficiency. Go bush, grow veggies, keep yourself alive until the world turns. Make your own food, water, shelter and try to get off money as much as possible.

    Sounds to me like a simple Fruit Tree has more value then most Money and Assets these days. The Boomers are never going to give up there Egos, the worlds going broke and the Young are never going to take there side.

    I dont think it really matters. Cars, Works of Art, Collectables… its all derived off a Boomer based economy who drew all the power to themselves and gave none to the young. Now there’s no future.

    Some have mentioned Crypto? But I dunno. I dont think Crypto will be it.

    Maybe the days of money haggling and boomers looking for an easy retirement are over. Maybe we enter into a new world of Nature and Self-Sufficiency.

    So how long will ‘Property Law’ last? All these people sitting on houses and all these people about to die from starvation etc, sounds like a lot of people will be throwing up a tent anywhere they can find a home.

    Independence is about dignity to ones self. We know once we give that up, we become a slave. We know over the past 20 years, there’s a been a war to enslave virtually everyone for cash and to syphon it off. I think a lot of young would rather be dead, then be a slave. After the past 20 years, if the Boomers come knocking, the young will just tell them to get stuffed.

    I think its back to nature. Thats what I think. Cities will turn to crime. Human need will turn people violent. Maybe not today, but its coming.

    I also think Australias Young are getting sick of being blackmailed. Why support the very system that enslaved you when you can go bush and live free?

    Thankyou Macrobusiness. You just planned my next Camping Trip with my mates.

  3. MathiasMEMBER

    Aussie Dollars are fast becoming blackmail. The more you rely on them, the more your going to be Blackmailed. Its being weaponised against the young so the Boomers dont die. They brought it on themselves.

    Technology will collapse. Sounds like we’re going back to basics.

    Im a Queenslander. The Bush is basically my home ;p

    Sydney and Melbourne will probably die… but Queenslanders will survive.

  4. MathiasMEMBER

    Let me know when Canberra starts turning against its own people.

    Im expecting it.

  5. MathiasMEMBER

    One of my favourites.

    How to make a poison blow dart in the bush – https://www.youtube.com/watch?v=uzpXZX39Eb4

    Its amazing what you can do with Tree Sap.

    Life is about Living. Until the Australian Government gets on peoples side and stops being its enemy, I dont see anything changing.

    At some point, Im expecting the Australian Government to turn full Authoritarianism, to come after Aussies with an Army and to wipe out its own people to protect itself. They’ll be trying to protect ‘The System’ but as we already know, that system has already died.

    ‘The System’ no longer serves the people. ‘The System’ has seen its day.

    • Lord DudleyMEMBER

      I live in the US. It’s boom-times here. Take Boulder, CO for example. The median house price has risen a whopping 57% over the last 12 months. There are shortages all over the place (cars, lumber, etc…) and everyone is hiring like crazy. Housing markets are going bananas all over the country based on crazy high volumes. There’s a truck driver shortage (https://arstechnica.com/cars/2021/04/people-are-worried-gas-prices-will-rise-due-to-truck-driver-shortage/), and I can guarantee you that the trucking companies in the US won’t do what Australian companies do and whine about labor shortages. They’ll offer training and higher pay, because every delivery they can’t make loses them a lot of money, and there’s so much demand that their customers will happily eat the rising prices.

      It’s the roaring 20’s again. Rising pay, collapsing unemployment. COVID will be mostly gone in 2 months, and I can guarantee you that Americans will simply ignore the residual effects. No lockdowns here!

      • wow 57%, surely Reus is on his way to FLT centre now to book him a one-way ticket to Colorado!