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Dear all,

here I am talking about life, family and very often personal finance and the world’s macroeconomic (i.e. the big picture economics) situation is in shambles. Not a day goes by whithout reports of markets worldwide finishing in the red and fears of no economic growth for years to come. Recession and Inflation are the buzzwords everywhere.

(Stock) Markets is where all sorts of financial products are exchanged, products that represent our economy (stocks, commodities, bons, foreigns currencies, and so on and so forth) and red is when their value / price finishes lower than on the day before, meaning there are more people wanting to get rid of it than have it. Good old supply and demand.

1. The world sinks into a pandemic for 2+ years.
2. With time, lockdowns create serious bottle necks in the supply chain.
3. Companies have a hard time getting hold of raw materials, need to look into to other, more expensive ways, to get them, pass these extra costs to their customers.
4. Prices rise faster than usual, inflation alarms go off.
5. Central banks fight this by increasing interest rates, making it harder for companies to borrow money to face their increased costs or invest in their growth (tech companies in this case).
6. Stocks start tumbling. Government bonds are more attractive.
7. Russia invades Ukraine; The world imposes very serious sanctions and Europe is in for energy shortages. It becomes obvious how dependant it is from Russian gas.

Seven bullet points that make you want to crawl back to your bed.

But let’s zoom out 🗺️.

The world has seen some very turbulent times in the past and it will again in the future. We just happen to be experience them in the flesh. That is why it is SO important to think long-term (15+ years) if you ever decide to invest your money in the global economy. It’s investing for your retirement and your children’s college and their children’s wealth. It’s generational wealth.

And by the way, the Organisation for Economic Cooperation and Development (OECD) expects the global economy to grow 2,2% next year. Better than 0%, right?

So keep those Sparpläne steady! And if you still don’t know what I am talking about, just drop me a line 😎

Take care!

Your André

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