You read the news. Things just don’t seem right with your country. Everything seems screwed up somehow somewhere. Nation debt is increasing at a rapid pace. Debt is ok if it’s for the right purpose (i.e development). However, debt is increasing due to spillage, then that becomes an issue. Hatred among people grows, whether it is due to pure social setup or demographical issues. Crime is increasing because people just don’t have food on the table. A lot of displaced people due to rising unemployment as well as urban-rural divide. The country may not have moved up on the value chain, remains stagnant for a very long time. Prosperity for all seems like a myth in the abyss. The country’s currency continues to depreciate, creating a serious uncertainty on your future wealth / assets that are denominated in a depreciating currency. So, what do you do?
DO YOU MIGRATE TO FIND A BETTER PLACE? IS THE GRASS GREENER OVER THE OTHER SIDE?
Imagine a husband / father at the age of 40s. He has a wife and 2 daughters. Not a sole bread winner, as the wife works at a professional firm. He works in mid management of a bank. Combined household income is not too bad but it is not sufficient to enjoy financial freedom. For the two kids, he may consider to migrate to greener pasture (?) e.g Singapore, Australia or UK , etc (the typical commonwealth promised lands). There are many questions. How to start? Who would employ you? If your domicile country’s currency is already bad, then how to transfer the wealth over there? How to have money to buy a house there? Rent perhaps. What about wife? Are we able to secure jobs at the age 40s? Do we need to be a cab driver over there or take up any job that comes by? At the same thing, if we do not do anything (with our country continues to move backward), we may see a potential destruction in our current wealth despite how hard we work in our current roles.
Let me propose some possible alternative options that are more palatable to certain people. FIRST OF ALL, YOU DO NOT NEED TO HAVE PHYSICAL MIGRATION TO OTHER COUNTRIES. YOU CAN CONTINUE TO EARN MONEY HERE BUT WORK CONCURRENTLY ON OTHER PALATABLE OPTIONS.
Have a “GLOBAL CITIZEN” mindset: Change your mindset. Think like a global citizen. Think yourself of not belonging to just one country, but to the whole world. Be aware of what’s happening in the world. It is a borderless world. You can possibly work anywhere, earn anywhere. Prepare to work in Phuket for a client that is based in Jakarta. Prepare to attend a course in Manila or even conduct a course in Singapore. Being a global citizen means to develop the skills necessary to facilitate global mobility. We should not constrain ourselves to just working in one particular place, company, location, state or country.
Financial migration (not physical migration) matters: If you believe that your country’s currency is on the verge of future depreciation, think of migrating your assets to other stable countries. Diversify your investment options / portfolio and continue to embrace global investing. Don’t say no to new investment possibilities. Pick up the knowledge, be agile and adapt to the new horizon.
Training your kids for global mobility: Strengthen your kids’ command of international language like English. Learn more languages for international trade. Ask them to embrace technologies (e.g coding) for future tech jobs that would allow remote working opportunities. Expose them to global developments and future trends. More importantly, build their confidence to face the ‘real world’.
What’s happening with options this week?
Yesterday, some of option positions entered the 21D DTE. I managed to roll forward some of the existing option positions to 2-4 weeks expiry so that I have sufficient time to let the probability to play out. Nevertheless, I am still still stuck with two positions – KALV and PERI of which my short call options are clearly in the money. I am hoping for a scratch or minor loss for PERI next week (if I did not manage to roll forward it). KALV remains quite far in the money.
To buy some time, I will continue to try to roll-forward for the both KALV and PERI positions, at least for a small credit or a small debit premium.
Other than that, I am gradually adjusting my portfolio beta-weighted delta as it is heavily positive-tilted at this juncture. Sold a credit call spread on EWZ, anticipating it to further decline due to rising global yield.
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