January 31, 2011
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Potential crisis is one reality you quickly learn to accept when youre an investor in frontier and emerging markets.

And right now, some of my money is party to a crisis.

As Ive noted numerous times in this blog, and in the Sovereign Investor Daily daily investment and asset-protection e-letter, I have brokerage accounts around the world – on five of the six habitable continents, in fact. Two of those accounts are in Egypt and Dubai, respectively.

The political unrest – born of rising food costs, high unemployment and decades of civil repression – is attacking stock market all across the region and the world. Egypts stock market, for instance, has plunged 22% in just days as violent protests push for President Hosni Mubaraks ouster.

At times like this, investors reflexively want to flee. Sinking portfolio values instill fear of even-greater losses so get out while you can right?

Wrong.

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Investing in stocks has never been about safety…

… though safety is a word routinely misapplied in the stock market.

Instead, investing in stocks is purely about risk. How much are you willing to risk to own a particular stock?

Even the biggest stocks that investors perceive as safe – Enron comes to mind – are risk-based assets that can and do crumble under the weight of the right kind of pressure. That pressure is unique to each company and each situation, but when it emerges, perceptions of safety evaporate like the ephemeral mist from which they were constructed.

And to be fair, crises like were now seeing in Egypt are not limited to emerging and frontier markets. All you need do is look back a few years to the Lehman Brothers failure and Americas housing collapse to find a major, developed-market crisis that wiped out trillions of dollars of investor wealth.

My point is that if you’re going to be an investor in any stock market, especially in the worlds up-and-coming small markets, you must go into that game knowing youre going to get bruised and bloodied on occasion. But if you own the right companies (and I’m confident I own good companies in Egypt and Dubai), and if you persevere, you will emerge victorious.

Which is why I’m now beginning to scout through the rubble of Egypts uprising. Suddenly, some very good companies are trading at some very appealing prices. And Im ready to start playing some offense.

The Government Has Announced Their Plan to Confiscate Your Wealth

Let the IMF report speak for itself: “The sharp deterioration of public finances in many countries has revived interest in a capital levy — a one-off tax on private wealth — as an exceptional measure to restore debt sustainability.”

Bottom line, the U.S. government will take your assets to prevent its empire from crumbling.

This won’t apply to just the 1% of Americans who hold the most wealth — it will take the government confiscating the assets of every American with positive net worth to abolish the debt and prevent the economy from crumbling.

Don’t stand by waiting for the government to rob you so it can fix its own stupid mistakes. Discover the steps you can take to get your wealth out of Uncle Sam’s hands.