International Man: Today, we're going to take a close look at a pressing issue that's growing in importance every single day: political risk.
No matter where you live in the world, political risk is growing and may soon have serious implications for you and your investments.
In the United States, this has become a significant concern…
Unsustainable government debt, a corrupt and failing political system, and swings in attitude toward more government involvement in daily life have severe ramifications you should know about.
Doug is recognized as one of the founders of the concept of using international diversification to reduce one's political risk. Today we're asking him about this problem.
Doug, what inspired you to write your best-selling book, International Man?
Doug Casey: Well, that book first came out in 1976, which was long before most people were thinking internationally and when relatively few Americans had even traveled abroad.
Most people seemed to have the mindset of a medieval serf—one where people were born in one country and stayed there. That's still true today. Most people don't recognize that they need to diversify themselves geographically and politically. It's not enough to be diversified just among investment classes—stocks, bonds, gold, real estate, and so forth— because your biggest risks today are political.
That's what the book was all about: making the most of your personal freedom and financial opportunity around the world. I've travelled to about 160 countries and done business in many, and it's been very rewarding on all levels. I believe in putting theory into practice.