QUESTION: Dear Mr. Armstrong.
I hope that you will please give me some advice on the following topics. Sorry for the grammar.
I live in Denmark and have been saving up some money that I want to invest. My options are:
– buying a house and rent it out (I have 1/5 in cash and need to lend the rest as fixed mortages) or buying stocks for the money or simple wait and saving up more money and then buy stocks or a house in 1-2 years when things fall apart in Europe? What would you suggest?
I already have some money invested in stocks (only Danish stocks). Is it better to sell out now (in 1-2 years) or hold on to them through the next crisis?
And how about in the long term (when war breaks out in 2024-2027) is it better to buy something else or save the money so I can quickly migrate to another place on Earth (with cash?)
ANSWER: I believe the best thing is to remain liquid, and equities tend to be the better road rather than investment property which is not movable. You can open an account in the USA or even Singapore or Thailand. In that way, you can always move your money offshore as Europe become more aggressive in their hunt for taxes.
The next several years are not like the ’50s or even the ’80s. They are going to be much more choppy and volatile. So this is something you will have to keep an eye on for the trends will tend to swing every 2 to 3 years.
We all need a place to live. So what I am talking about is investment properties. They will be highly dependent upon banks willing to lend mortgages. As the banking sector get hit, you will find that the liquidity in real estate will dry up very rapidly.