Economic Update - April 2009

Recession-Proof Your Financial Portfolio, Before It Is Too Late! It has been a few months since our last economic update, and the current economic environment has brought both good news and bad news.

The bad news is that it looks like we are entering the longest recession in history. Typically in a recession, there are one or two factors working to slow the economy. Not this time - now virtually every aspect of the global economy is slowing in symphony. The good news is, that for the first time in a half a century, we actually know with tremendous clarity what is going to happen before it actually happens. This means that, with proper planning, we can take advantage of the situation by taking the appropriate actions.

The analogy that comes to mind to describe the current situation as of March 2009: we are like passengers on the Titanic, and we just realized that we hit an iceberg. We don't know exactly what happened, or how, but we know that something very uncomfortable is on its way. The idea here is that this is not the time to sit, wait, and watch what happens. Now is the time to plan wisely and take immediate action, before it is too late.

C3 is armed with client specific solutions, and is prepared to help each of our clients to bullet-proof your portfolios now, before it is too late.

We are reminded of two important lessons for a second time in the last Century, the first time being 1929:

LESSON 1) The Most Stable Industry in the World is the Insurance Industry:

Just like during the Great Depression of 1929, today most large companies are going out of business, especially the banks, while the insurers remain very strong (with the exception of AIG, even though AIG's Insurance division is very strong). Most insurance carriers were not "sophisticated enough" to play in the credit swap, mortgage back insurance playground, that has destroyed many of the most powerful banks in the world. Insurance companies have uniquely powerful business models, and their customers cannot simply take their money and run, like bank customers can. Even if Insurers wanted to invest in mortgage back securities, they were limited by their strict business models, which only allowed them to invest a tiny percentage of their funds into that sector. Look at the strongest rated companies in this devastating economic environment - they are mostly insurance companies.

LESSON 2) Investing directly in the equity of publicly traded companies is a long term recipe for disaster. There is a much better way to participate in the market's upside.

This is exactly the opposite of what the securities industry has been teaching us, but their job is to sell us on securities. Equity in publicly traded companies should be reclassified as "insecurities", based on what we have seen so far in the last decade alone (TWICE we have seen the stock market give back over half its value within a year's time). C3 has been dedicated to teaching our clients (for many years) how to participate in the market's upside without the downside risk. The top money managers in the world (less than 1%) have been using this simple methodology for over 30 years.

Recommended Action Steps

1) Set up a meeting with your most trusted advisor to evaluate every aspect of your portfolio, specifically your asset allocation breakdown.

2) Reposition your portfolio to eliminate stock market risk, real estate market risk, and inflation risk first. We may be in a recession for as little as 3 years, or as long as 12, so it is better to be safe than sorry. Hope for the best, but prepare for the worst.

3) If you are still directly invested in the stock market, it is time to take your losses now before it is too late. This is not a buying opportunity! After the Great Depression, the stock market took 15 years to get back to its previous levels. Our clients don't want to take those risks, and ever since the 2000 crash, we have been telling all of our clients to get out of the stock market in the traditional sense. If you want to participate in the stock market without the downside risk, we can assist you with a structure used by the most sophisticated money managers in the world, going back over 25 years.

4) Investment ideas that may have worked 5 years ago, will not work this time. Stop buying depreciating assets like real estate, even at prices below market value. If we are in a recession for 10 years, there will be a much better time to acquire these assets than today. Plus, there does not seem to be an exit strategy, except to rent out the property and hope for an economic recovery. This would be a great strategy if this was a typical recession. However, as we have said, this recession is much deeper, with no end in sight.

5) Create more guaranteed income in your portfolio. With so much uncertainty in the marketplace, there are many ways we can create guaranteed income without increasing risk exposure.

COMPELLING SOLUTIONS

1) 7.2%/Year Income Solution - Insured, AA Rated Return - $50k Minimum

In our last Economic Update, we showed clients how they can earn a 9.25% return per year on an unused credit line, with minimum allocation of $2 Million, without exposing the client to unnecessary risk.

With a minimum investment of as little as $50,000, our clients can now LOCK IN a minimum 7.2% return per year from a AA rated company. This is an exciting and safe way to earn a fantastic rate in a challenging marketplace.

Contact us C3 at info@capitalconsultingco.com for a complimentary portfolio analysis, so we can position your portfolio for success during what looks to be a challenging time for most.

2) Asset Monetization

C3 clients utilize our global banking facilities to monetize their non-performing assets, without exposure to unnecessary risk.

Do you own non-performing assets, like valuable artwork, raw land, valuable gems, rubies, or an unused credit line on real estate? You may be just one relationship away from turning those assets into liquid cash (without having to sell them) to finance your lifestyle or your next project. C3 specializes in monetizing bankable assets via a number of flexible structures. Contact C3 at info@capitalconsultingco.com to find out which of these financial structures is right for your asset and your specific situation.