Editorials

  • Klaus Meitinger, Moritz Eckes

The ultimate value storage.

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Dear Readers,

what keeps its value? This question not only concerns our network, it was also omnipresent at the Lerbach round. The large states have apparently exceeded the "point of no return" due to the Corona rescue measures, up to which they were able to control their debt burden without the financing of the central banks. So the central banks will (have to) continue to channel money into the cycle. If the money supply now increases much faster than the quantity of goods, won't financial assets - bonds, cash, account balances - at some point become relatively less valuable?

The central function of money - apart from its capacity as a means of payment and unit of account - is that of a store of value. If it came under threat in the past, the citizens of the country concerned exchanged their capital for better money. In the last century, this was usually the US dollar. Today the situation is fundamentally different. The major currencies themselves - dollar, euro, yen - are in danger. Between them there is a balance of wavering giants. No chance to hide there.

Flight into real estate, land or gold is considered the best way out. But even that has its pitfalls. All these assets are under the influence of a state in distress. Their possessions can be prohibited or taxed at will. Perhaps this explains the recent rise in the price of Bitcoin. Only - as long as its storage location can be hacked, it is not safe either. The ultimate store of value for us therefore remains a participation in global entrepreneurship - let's just call this the world share. Because these companies provide necessary products and services, they should be profitable in the long run. Their role as employers also protects them from state intervention and their shareholdings from excessive taxation.

Keeping this in mind is especially important today. The next six months could be turbulent on the stock markets. If there is a further significant decline in share prices in view of the rising number of infections and tougher lockdowns, it is important to keep your nerves. And to take advantage of the opportunities to replenish the value memory. Because the more difficult the economic situation becomes, the more extensive the government rescue packages and central bank financing become. And the more paper money there will be relative to the companies and their products. In the long term, global shares could then become very scarce - and correspondingly expensive.

Stay courageous and confident - and have a safe and merry christmas!

Sincerely,

Klaus Meitinger      Moritz Eckes
Editor-in-Chief        Publisher

  • Dr. Günter Kast

Cargo chic.

22 Wong 1

Entrepreneurship. The Wong family in Papeete, Tahiti, has developed a very special business model out of necessity. Their Compagnie Polynésienne de Transport Maritime combines passenger and cargo shipping, heading for two unusual destinations in the South Pacific: the remote Marquesas Islands, where painter Paul Gauguin is buried. And the island of Pitcairn, where the mutineers of the "Bounty" once hid and where their descendants still live today.

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  • Klaus Meitinger, Moritz Eckes

Courage. Confidence. Confidence.

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Dear Readers,

Of course the next few months will be tough. No question about that. But we don't have the impression that family businesses are emerging from our network. On the contrary. We hear sentences like: Take responsibility, decide, follow through. It's fantastic how the employees go along in this situation. Now more than ever instead of yes, but. The fact that everything secondary is now relegated to the background and only the survival of the company and the jobs counts, brings out the best in us. And: We have already experienced this twelve years ago. Now comes the great opportunity to gain market share. The fast eat the slow. And the brave eat the despondent. No, we are not worried about the entrepreneurs in our country.

Just as exciting today is the subject of capital investment. Of course, the members of our network were initially shocked when prices fell vertically in March. In the meantime, however, this has changed fundamentally. Now the chances are being sounded out: In the coming months, opportunities are likely to arise, as they occur at most once in a decade. This will be a great time for investors. We have outlined the guidelines for this for you in the cover story starting on page 44. Up-to-date details can be found regularly on our homepage (www.private-wealth.de).

Our greatest concern is that the crisis is being instrumentalised by populists. There are already protests that the Federal Government has reacted too drastically, harming the economy without reason. The figures show that mortality has not risen sharply at all. We ask ourselves what will happen if unemployment and bankruptcies increase drastically in the future. Nassim Taleb formulated some wise thoughts in his book "The Black Swan" 13 years ago. In a nutshell: Let's assume that politicians with courage, brains and foresight would have passed a law requiring bulletproof, permanently locked doors on all aircraft cockpits as of September 10, 2001. It would certainly have prevented what happened on 11 September. Only - no monuments would have been erected to these people. The public, which would see that the measure was completely unnecessary and a waste of money, could even expel them from office.

If it comes to that, we have to fight it. Remain courageous and confident!

Sincerely,


Klaus Meitinger Moritz Eckes Chief Editor Publisher

  • Hanns J. Neubert und Ludger Wess

Herculean task.

32 KlimaHerkules Aufmacher

In the chart above, only CO2 emissions from the fossil fuels coal, oil and gas are listed. If other sources such as cement production or cattle breeding were also taken into account, they would be around ten percent higher. Source: BP

Stop climate change. Climate change is a global problem - and can therefore only be solved internationally. Strategies that rely on national solo efforts, on renunciation and bans will not work. What is needed are entrepreneurial initiatives and innovative processes that make it possible all over the world to remove CO2 from the atmosphere or convert it into other raw materials.

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  • Klaus Meitinger

Insecure times.

thumb EditorialDear readers,
at private wealth, it is our goal to present investors and entrepreneurs on our homepage only with information that is highly relevant to this target group.
In order to support you in your investment decisions in these turbulent times, we publish, for example, the results of models that you won't find anywhere else.
So far this has brought real added value. For example, the capital market seismograph - the results of which we publish regularly - advised a massive reduction in the equity allocation when the DAX stood at 11,000 points on 10 March.
Now we are in constant contact with our network to find the right time for you to re-enter the stock market.

To find out exactly how these models work, read "Valuables from the network" after your registration and select the article: Model Check.
We hope this will provide you with inspiration and orientation.

Cordially,


Klaus Meitinger      Moritz Eckes
Chief Editor            Publisher

  • Klaus Meitinger

An intrepid look into the 2020s.

Dear Readers,

in a few weeks, the new decade will begin. The last decade has been shaped by the disappearance of interest rates, the outstanding performance of the US equity market and the recognition that the world has a real problem with climate change. This is the starting point for strategic thinking on the 2020s.

Thinking ahead, global warming will remain the greatest socio-political challenge. We see a halfway realistic hope in the "self-defeating prophecy". If the lung doctor says to the chain smoker: "You will die at the age of 50", this could shake the smoker to such an extent that he radically stops smoking - and turns 70. Only in this way will there perhaps still be a chance to refute the terrible and correct forecast of a climate crisis. However, the price of CO 2 would now have to be drastically increased very quickly. Only then will it be possible to economically implement the technological solutions that already exist today on a global scale (please read page 32ff).

For investors, the end of the interest rate is the most important new date. Our panel of experts - the Lerbach Round Table - is convinced that this will not change in the next decade. Now that bonds and real estate already reflect this in prices, the last candidate for a complete revaluation is the broad equity market. However, fears of recession and earnings slumps currently stand in the way of this (page 42 ff). This can lead to turbulence again. These would then be opportunities to buy. It is also interesting to note that in the past, the best markets of one decade in the next were usually no longer in the lead. If that remains the case, the coming decade could not belong to Wall Street, but to emerging markets and frontier markets (pages 48 and 88).

Our publishing house will also reposition itself in the future. Starting next year, we will present new ideas, strategies and stories from the network on our homepage (www.private-wealth.de) two to three times a week, thus massively expanding our online reporting. However, the following still applies: private wealth is a curated platform. The content must have real relevance for entrepreneurs and investors. This is of course free of charge for you as a subscriber. We would be very pleased if you accompany us on this way and visit our homepage regularly.

Sincerely,

unterschrift-km

Klaus Meitinger Chief Editor

unterschrift-eckes

Moritz Eckes
Publisher

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