Globalisation will never stop  – it just continues to evolve

By Raoul Ruiz Martinez features@algarveresident.com

Raoul Ruiz Martinez is a consultant for Finesco Financial Services Ltd., Glasgow and regulated to advise on capital investments in both the UK and throughout Europe under the MiFID regulation.

From austerity measures across the western world, right through to fundamental changes in Northern Africa and the Middle East, globalisation affects all of us. 

The huge social meteorite that was the global financial crisis has been undeniably a precursor to today’s events.

Both crisis and turmoil are the results of the release of a great deal of pressure. Years of excess and underlying “mismanagement” of economies and sovereign coffers have led to the eventual breakdown of these affairs where globalisation has been instrumental in speeding up the end of eras that could have continued for far longer. 

We cannot ignore the events that are being transmitted to all corners of our world via innumerable modes of modern media and technology. In times past, all that you had to do was get up from your comfortable chair to switch over the unpleasant programming, as it was of no interest or did not directly affect us.

Today you simply cannot ignore such epic events as they have a more rapid effect on our personal and financial lives.

On reflection of our current financial world, it is all too apparent that inflation and taxes are on the up which may well create a similar scenario to that of the post oil-crisis of the 70’s in the next few years.

It may be futile to compare the current financial markets to that period or any other for that matter, but nonetheless you should be positioned to stay in control when taking the necessary investment decisions surrounding your current portfolio. 

Just as a successful football manager waits on the touchline to monitor the changes in pace or rhythm of the game, you should do the same with your investments.

Make the necessary alterations or substitutions, however big or small, to remain in control and win the game. 

The right investment decisions across the respective investment asset classes are mandatory towards your goals. Depending on what you want to achieve from your wealth, whether it is your pensions or capital, this needs to be monitored year in and year out whatever flares up across the globe.

Unfortunately, so many investors failed to do so in the last few years by keeping their capital locked up with the larger institutions as passive spectators watched investors leap ahead using the tools readily available and retaining an open mind. 

Whatever the financial weather, against the backdrop of a chameleon-like and fragile geo-political world, economic events are fundamental to all our investment decisions.

This makes tax planning an essential ally in fighting to preserve your income and wealth for you and for your family (note that not all tax planning solutions are authorised and regulated by the Financial Services Authority).

Finally, qualified and effective fiscal and financial advisers must work with their clients to cover the seeds of change to the investment world. Professional advisers also experience fundamental changes such as strict compliance and regulatory requirements to protect their clients.

These need to be wholly understood as often they can also make sterile some investment decisions during an immediate post-financial crisis period for many.

It certainly is not straightforward and there are some key essentials to effective and progressive financial planning to either make a new start or the necessary changes to your global financial needs against the backdrop of a constantly evolving global community. 

Be aware of changes to the world, as it will affect your personal and financial lifestyle. Don’t stay still and be tossed and turned by the deep changes to globalisation but take control and roll with the punches to keep on top.

This article is intended to provide a general review of certain topics and its purpose is to inform but NOT to recommend or support any specific investments or course of action.

Raoul Ruiz can be contacted at the offices of euroFINESCOs.a. either by telephone on 289 561 333 or on email raoul.ruiz@finesco.com