How safe is your money right now?

Paolo Cabrelli | 26 May 2020  What is the financial threat level in the UK?   Dear Reader,   We’re getting used to these threat levels and alert systems.    In fact, the 21st century is practically defined by them.   Whenever we are unfortunate enough to experience some disturbing social event… like a terrorist attack… or this blasted pandemic…   We get reminded that there is some warning structure in place.   Some sort of scale to codify our panic and concern.   Right now, the UK threat level from a terrorist attack is ‘SUBSTANTIAL’.   And on Boris Johnson’s virus alert system, we are ‘AT A FOUR’.   I’m not sure what those levels really mean.   We can’t do much about either of those scenarios.   Unless you are a dab hand at counter terrorism… or on the frontlines of epidemiology… we’re bystanders to these alerts. We can’t use the intelligence to do much other than follow the herd.   So today I would like to alert you to something about your money that you can actually act upon.   And it is forward looking. Giving you time to prepare.   Unknown to most savers and investors, there are measures in place for the next recession that should put you on red alert.   Something that – if enacted – could seriously curtail your rights to spend and access the money in your bank account freely. You need to know about this law. Understand it. And know how to move a small portion of your money beyond its reach. And urgently so. Because this law was created for an extreme financial emergency. A deep crisis. That scenario seems close enough – likely enough – for some kind of evasive measures to be a priority.   Last week, the Bank of England issued a stark warning – as reported in the Financial Times:   "UK set to enter worst recession for 300 years" That’s why we have recorded an emergency briefing to explain this law…how far it goes… what the implications are… and what you can do about it to help protect yourself. If you have a sum of money sitting in the bank, you should read it, now.   This law could freeze access to some of your money.   In extreme circumstances it could even, without your say so, convert a portion of your money to bank shares… as a sort of rescue package. Or “bail in”. I don’t know about you… but I do not want my savings, not a penny of them, on a list that could be used to fund a bank bail out. A time may come soon when we see this law enforced, or partially so. A global depression is possible, a financial crisis of some kind, practically nailed on. Get informed now – while you have options to preserve at least some of your money from these measures, if they come to pass. Read our emergency briefing. According to famed economist Kenneth Rogoff: “The 2008 financial crisis will be seen as a dry run for Covid-19 cataclysm”   The law I am warning you about was brought in as a response to the 2008 crisis… A way to use deposits to save the banks, in an emergency. I suppose, in its way, it’s ingenious. Ghoulishly resourceful. Like drinking your own urine to quench your thirst. To me at least, it’s equally unpleasant. To help investors understand this threat, and calmly respond to it, I called upon our Chief Investment Strategist Nickolai Hubble. In our briefing, recorded from Nickolai’s home (in lockdown, like the rest of us) he shares six ideas that give you options. Ways to help preserve a small portion of your money outside the financial system. And full details of his #1 crisis trade to make now.     I called on Nickolai because he started warning about this insidious law two years ago – when the likelihood of its enactment seemed impossible. At the height of the bull market, even in our office, we didn’t believe we’d ever see this law surface as a legitimate threat to savers. But times have changed and they have changed fast.   Nickolai has time tested strategies in his back pocket that tend to do well in times of crisis. At the very least I think you should read the emergency broadcast and get informed. Learn about the options available to you. I think you’ll be glad you did.   Do not wait until there’s no time to prepare. Unlike Boris’ abstract scale… you can use our alert to prepare ahead of time. Many thanks,    Paolo Cabrelli Associate Publisher, Southbank Investment Research

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