In 1950, Communist-ruled North Korea — assisted by China and the Soviet Union — launched an enormous invasion of the Democratically governed South, which in turn was quickly backed up by the United States and the United Nations. The result was the bloodiest and costliest armed conflict since WWII to this very day.

Though an armistice between North and South was signed in July of 1953, no official peace treaty was ever agreed upon, and some have argued that the nations are still technically at war. To be certain, tensions between Russia/China/North Korea and the US/UN/South Korea have never been fully calmed.

Though North Korea is oftentimes cited as the principal threat to world peace in 2017, it is not the only one. Terrorist attacks originating in a number of ISIL/ISIS infiltrated states have struck the US and other western nations in recent years — and the ideologically conflicting worldviews of powers such as the US, the EU, China, and Russia are also much talked about.

The bottom line? Even though most people hope for world peace, such tranquility is not guaranteed — and smart investors understand this. Here are a few facts you should keep in mind if you hope to protect your financial status from the ravages of war:

  1. Defense companies boom when war is declared. Organizations that produce weapons or provide wartime security usually receive quite a bit of funding when international conflict arises. Boeing, Lockheed Martin, and Raytheon are three good examples from the US. Survivalist industries — i.e. companies that build bomb shelters — also benefit from international conflict and tension.
  2. Specialized economies, on the other hand, plummet. South Korea, for example, which produces more than 40% of the world’s LCD screens, is not economically prepared for conflict — and the repercussions of this could impact virtually every nation on earth. This demonstrates the importance of diversified economic resources on an enormous scale.
  3. Taxes will increase. War is expensive — and sooner or later, the governments involved must pay troops, defense contracts, and other costs. For this reason, other subsidized government expenses, such as household commodities, also become more expensive when armed conflict strikes. Non-war-related industries with government ties, such as healthcare and education, also tend to take a hit sooner or later. And, as the title of this point already implied, your taxes are bound to go up.
  4. Gold prices rise dramatically. Armed conflict introduces tremendous uncertainty to the global economy — which provides a dramatic boost to irreplicable goods such as precious metals. If you suspect international tensions are rising, then now might be the best time to invest in gold, silver, and other similar commodities through a company such as Red Rock Secured.

Looking to protect yourself and your financial legacy from the negative impact of war? Visit Red Rock Secured online today for tips on how to achieve this!

 

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