“The only question with wealth is, what do you do with it?” John D Rockefeller
I hear so many times the term “green shoots”, only to hear the government’s very effective lawn mower spring to action!
However, despite the tax man’s efforts to usurp unwilling corporate tax contributions, I believe we are facing the dawn of a new beginning where the world is governed by a few powerful conglomerates using the world stage to mitigate their tax obligations.
Who really drives the world economy? Corporate America alone has built up huge cash reserves held in its balance sheets and according to Moody’s, one of the top three world rating agencies, Corporate America is sitting on a cash mountain to the tune of $1.5tn.
To dazzle you even further and to put it into some form of perspective for us mere mortals, the hoarders are household names, Apple, Microsoft, Google, Cisco, Oracle and Qualcomm.
These six companies account for over 25% of the cash mountain locked in their bank vaults. Apple alone, who charges you a premium for their high tech devices, has nearly $150bn in its coffers, close to 10% of corporate America’s cash.
With US Federal Reserve’s policy of tapering signalling that the era of cheap debt is ending, one wonders when America’s appetite to invest and take on a bit more risk will kick start.
I raise this issue because it’s time the world reacted and demanded reciprocity. Not so long ago America gave the world a virus in the form of toxic assets (not to mention the taboo Lehman Brothers), which the world innocently consumed.
Alas, we are still today not out of the quagmire engineered by our friend across the pond and their bully-boy selling techniques – the rest is history… Now it’s time for America to come to the aid of its oldest and dearest allies, Europe (more pertinently Portugal/Algarve).
Pre-2008 Portugal was engulfed by our Yankee friends taking over the golf courses and the rest of the hospitality industry, let alone investing in real estate. I propose that the Algarve, in its various collective bodies, pulls our resources and construct a marketing campaign to entice our friend across the pond to once again entrust their Dollars in our beautiful region.
Naturally, I am not advocating negating our prime investors, our European partners, but to complement the existing inward investment from Europe and attract private investment from American citizens to the Algarve region.
Let’s make this a private enterprise to the mutual benefit of all participants. I propose we exchange ideas utilising modern form of communications and thus send me your thoughts to the contact details below.
“Fortune runs to meet us not less often than we go to meet her.”
By António Rosa
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António Rosa is an International Financial Adviser working with Blacktower Financial Management (International) Limited. 289 355 685 | 911 518 461 www.blacktowerfm.com
Blacktower Financial Management (Int) Ltd is licensed by the Financial Services Commission in Gibraltar. Blacktower Financial Management Ltd is authorised and regulated by the Financial Conduct Authority in UK