So why write an article dealing with austerity policy and portfolio management? Your portfolio? On the one hand, it is about political and macroeconomic problems. On the other hand, as a private individual, you are concerned about protecting your assets from political and economic crises and storms. At first glance, there is no direct connection between a world over which you have no power – politics – and another that seems within your reach – the wise management of your portfolio. And yet, today we need to understand what drives and stirs our society if we are to manage with wisdom our often hard-earned wealth. Michel Santi, an economist, essayist, head of a company and independent advisor to central banks, lifts the veil on how to understand this opaque world of finance. His aim is to protect your portfolio from future shocks, which are completely beyond our power as human beings.
A wise management of your portfolio
Of course, we all understand that there is always a vague link between the austerity policy enforced throughout the world and the profitability of your portfolio. The problem is that you don't necessarily realize what's at stake. And most of us usually don't know how to act, except by following the movement. Which, in times of crisis – be it banking, economic or health related – is hardly ever a good idea.
Sure, but how else can you protect your assets? The unprecedented situation in which our entire society seems to be submerged with this never-ending pandemic, which seems too simplistic to be honest, makes it difficult to think. And anyone who doesn't think has a hard time taking action other than by fad or panic. Once again, it is the management of your portfolio that is at risk of being affected by inappropriate decisions.
Which safe investments should we consider?
The current era, which is reconsidering all our core values, requires us to think for ourselves. This is no easy task, since everything is moving too fast and we have no time left for anything else.
When it comes to our assets in the bank, it is obviously easier to follow the system's presumably reassuring discourse. The problem is that it is essentially a lure.
The stock market, which is performing exceptionally well at the moment, is a very bad idea, since it is a lure in the medium term. With the real economy in shreds, it doesn’t take a fortune teller to understand that the bubble of stock market speculation will burst sooner or later, leaving your assets in the same state as the rest.
Gold poses several problems. First of all, there’s its volatility. How can you be sure that the next financial crisis will have an upward effect on this precious metal? Gold also poses a problem of transport and storage, especially when you have a good amount of it. Should you store your gold in your bank's underground vault? If the bank is in trouble, it is wiser to forget about this idea.
Zero or negative rates are a real headache for savers.
Indeed, even a child understands that if he puts 100 in his piggy bank and later retrieves 90, there is a problem! Of course, banks conceal the problem by messing around with taxes and the increasing cost of banking services, but everyone can see that Grandpa's savings account is no longer reassuring.
Leaving your money in the bank is therefore a growing problem, especially since the public is increasingly aware, after the subprime crisis of 2007, that the major financial organizations are not protecting citizens; and that the political system, which doesn't always understand the mechanisms of economics and finance, is doomed to be dragged into a situation out of its control.
Is there nothing left but despair facing a complex adversity?
The answer is no.
There is hope for your assets
First of all, it is certainly important today to understand the dynamics of economics and finance if we are to be in control of our lives. Michel Santi has written a dozen books on this subject, the last of which – to be published as we are writing these lines – is entitled “Testament d’un économiste désabusé” (“The will of a disillusioned economist”), which can be pre-ordered here (mettre le lien).
Moreover, you can discover the notoriety of Michel Santi, a renowned economist, by browsing his blog, especially his appearances in the media.
Finally, after having created and managed a SME of about forty employees in the field of finance, Michel Santi co-founded, several years ago, the Art Trading & Finance (ATF) company, which combines art with finance, based on the four pillars principle.
A visionary, a thinker and a pragmatist, Michel Santi saw several years ago that a profitable and sustainable investment was possible by looking to the art market with the keen eye of a financier.
Passionate about art, Michel Santi and the ATF team have had a keen insight by advocating investing in tangible assets such as works of art. This investment approach requires financial skills and a particularly fine knowledge of the art market. That's a piece of luck: these two skills are indeed the trademark of Michel Santi and his team.
You can also listen to Michel Santi in his video segments, which are true goldmines of fascinating knowledge about the finance that drives our lives, for anyone who wants to understand how our world works.
If you possess an estate and wish to make an investment that is much more secure than what exists today, please feel free to contact our team.
We will be happy to meet you, in person or online.
Your team at ATF
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