Unprecedented public debt, rampant money supply expansion, an unimaginable amount of derivatives and enormous financial imbalances make our current financial system extremely unstable.
Politicians and central banks worldwide are running out of realistic and effective solutions and never before have states been so heavily indebted during peacetime. Debt creation at the expense of the next generation and rising inflation are the consequences of these actions. The unprecedented creation of money out of thin air and the politically motivated manipulation of interest rates by central banks have a direct impact on the value of our money. “By failing to prepare, you are preparing to fail”, as the saying goes and so it’s clear that now is the time to consider a crisis-resistant investment approach for your savings before the next financial crisis hits. While it might be impossible to tell precisely when it will happen, it is safe to assume that it will.
Each financial crisis in the past had a different trigger and developed differently. Most often, however, the trigger was a surprising event or shocking piece of news and the first reaction of most investors was always the same: the panic sale of financial assets on the stock market and flight to cash. It is only after the dust has settled that we can analyze what the real effects of the crisis are and which asset classes stand to benefit from it. For example, in March 2020, upon the outbreak of the Covid pandemic in Europe, all asset classes experienced significant corrections. It was only after the initial shock had passed that precious metals, bitcoin and shares of companies that could profit from the pandemic saw increased demand.
Savings accounts and government bonds are often described as such. However, due to negative interest rates, these investments generally no longer yield any return and money invested there loses purchasing power over the years. So, where should I put my money instead? Which investment yields a return and offers protection against sharp corrections?
*stored outside the banking system in Switzerland
Balance as of 12/31/2022
The RealUnit is backed by returns-oriented and tangible real assets such as gold and investments in solid companies. At least half of the invested assets are held physically and securely outside the banking system in Switzerland. Our goal is to provide increased crisis resistance, long term stability and protection against the loss of purchasing power due to inflation or during economic and financial crises.
The RealUnit investment strategy has been implemented in various forms since 2001. 2001-2009: Private portfolio by Karl Reichmuth, 2010-2017: Swiss investment funds, 2017-2022: RealUnit Schweiz AG. The average of the five largest balanced funds of Swiss banks is used as a comparison (source Reichmuth + Co.) The performance of the RealUnit before 2017 is based on backtesting calculations.
In its initial phase, the RealUnit was structured as an investment fund (see history). We decided on the current structure of the investment company in order to be able to invest more easily and more widely in assets outside the banking system. Most funds have to adhere strictly to predefined parameters of each asset class, which severely limits their ability to react effectively to strong market flunctuations in a crisis. As an investment company, we can implement our investment strategy more flexibly and efficiently, in accordance with our investment guidelines, to protect the capital entrusted to us by our investors in a crisis.