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BizINVESTMENTS continued from page 211 solutions for wealth management are more critical than ever, Jaggi said. “We pay close attention to macroeconomics – the big picture of the world.” To preserve wealth and make money, investors need to address two key challenges ahead. “In the near term there is a struggle to find reasonable returns in a world of zero interest rates. In the longer term, inflation is the major unforeseen risk,” Rentmeester said. “Clients must position for this looming inflationary risk – a result of too much debt, unsustainable spending and unprecedented money printing.” Rentmeester and Jaggi see the common way of investing money as an out-

dated model. It assumes things are normal most of the time. Rentmeester said the stocks and bonds world has been good for 40 years driven by declining interest rates – but stocks and bonds are no longer poised to benefit in a future of higher interest rates. “The writing is on the wall that we will stay in a weakened low-growth world – here, in Europe and Japan,” Rentmeester said. “To counter those forces, governments are printing money – to attempt to paper over the weakness,” he added. “It’s a dangerous game with a bad outcome. Policymakers are once again inflating financial bubbles and creating dangerous imbalances. While they have temporarily postponed the problems, they have failed to address the roots of

the 2008 crisis – which are still all there, only bigger.” To protect clients from the forces ahead, WindRock advocates allocations in tangible or hard assets – investments such as precious metals, farmland and real estate. “The better path for high-wealth clients is to invest in things like emerging real estate opportunities – luxury rental homes in gated communities and farmland in the Midwest leased to tenant farmers. Investments like these can provide a more reliable return if inflation returns,” he said. WindRock is rooted in a passion for collaboration in the spirit of entrepreneurship, Jaggi said. “We think like business owners – because we are business owners.” Biz

We pay attention to macroeconomics – the big picture of the world. –

212 BizTucson


G. S. Jaggi, Managing Director, WindRock Wealth Management

Winter 2014

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