By Tom Worthington
This article is published on: 5th May 2025
How It’s Impacting Investors and What’s Driving It
In today’s economic rollercoaster, market volatility has become a feature, not a bug. Thanks to inflation, interest rates, and politicians who change their stance more often than they change their ties, investors are left riding waves of uncertainty
Market volatility refers to how wildly asset prices swing around. It’s measured with stats like standard deviation or the VIX—aka the “fear index.” When VIX is high, it means traders are about as calm as a cat in a bathtub.
Think of volatility like a political debate: a lot of shouting, some overreactions, and nobody quite sure what the outcome will be—but everyone’s got an opinion.
When markets get shaky, investors run for the hills—or more precisely, into gold, bonds, or the financial equivalent of curling up under a blanket and binge-watching Netflix: cash. It’s not that they don’t want to invest; it’s just hard to focus on stocks when the economy’s behaving like a budget committee after three espressos.
High volatility often leads to panic selling and FOMO buying—essentially the investment version of speed-dating your portfolio. One bad news headline and people dump their assets faster than a politician deletes tweets after a scandal.
With public markets swinging like a metronome at a concert, investors are looking elsewhere: real estate, private equity, and alternatives that don’t fluctuate every time a central banker clears their throat.
Alternative strategies are basically the Switzerland of investing—neutral, quiet, and generally unaffected by the chaos going on next door.
When markets are turbulent, people freeze. Buying a house. Starting a business. Investing in that avocado farm you saw on Instagram?! Better wait until the economy isn’t throwing daily tantrums like it’s on a sugar high.
Geopolitical Tensions
Let’s face it—if the markets had a relationship status, it would be “It’s complicated.” Global tensions (Ukraine, Middle East, China-US trade) have created an environment where investors are just one diplomatic gaffe away from selling everything and moving to the woods.
And with international summits resembling more of a group therapy session than a solutions meeting, it’s no wonder markets are twitchy.
Inflation and Central Bank Policy
Central banks are trying to tame inflation with interest rate hikes—kind of like trying to put out a grease fire by hitting it with a calculator. Every time Jerome Powell or Christine Lagarde so much as raise an eyebrow, markets react like they just heard tax hikes are back on the menu.
Recession Fears
Recessions, Soft landings, Hard landings… No landing? At this point, the economy is basically being piloted by someone reading the instruction manual upside down. With mixed signals and conflicting forecasts, markets are responding like passengers on a turbulent flight—fastening their seatbelts and ordering strong drinks.
Tech and Social Media Hype
Social media has turned investing into part-time entertainment. Between Reddit-fueled pump-and-dumps and influencers recommending crypto in between smoothie recipes, market swings have become more meme than metric. Add algorithmic trading and you’ve got a digital casino with fewer rules and more drama than the House of Commons.
Earnings Uncertainty
Earnings season now feels like a bad date—lots of build-up, dramatic reveals, and someone always ends up disappointed. With rising costs and unpredictable demand, analysts are doing more guesswork than polling firms during a leadership race.
Here’s what smart investors are doing—besides stress-eating during market dips:
Volatility might be nerve-wracking, but it’s not the enemy. It’s a changing a nappy—messy, emotional, and always changing—but ultimately navigable if you stay calm, stay smart, and remember that every cycle, no matter how wild, eventually turns.
So hold onto your investments, keep a sense of humour, and remember: if in doubt talk to your adviser.
By Tom Worthington
This article is published on: 18th April 2025
For those working aboard superyachts, managing finances across multiple countries is part of the job. Offshore banking is a common topic in the industry, but what does it actually mean? More importantly, how can superyacht crew members ensure they use offshore accounts legally and effectively?
What is an Offshore Account?
An offshore account is a bank account held outside the account holder’s country of residence. These accounts are often established in jurisdictions known for financial privacy, currency flexibility, and, in some cases, tax efficiency. Common offshore banking hubs include Switzerland, the Cayman Islands, Singapore, and Luxembourg.
Key Features of Offshore Accounts
• Multi-Currency Access – Useful for those paid in different currencies or working in international waters.
• Privacy & Confidentiality – Some jurisdictions have strict banking secrecy laws.
• Tax Efficiency – Depending on residency status, offshore accounts may offer tax advantages.
• Asset Protection – Offshore banking can safeguard funds from political instability or legal claims.
Are Offshore Accounts Legal?
Yes. Offshore banking is entirely legal, provided account holders comply with tax reporting obligations in their country of residence. Many governments enforce strict regulations requiring individuals to disclose offshore accounts.
Key compliance measures include:
• Common Reporting Standard (CRS) – Over 120 countries automatically share offshore account data with tax authorities.
• Foreign Account Tax Compliance Act (FATCA) – A U.S. law requiring Americans to report foreign financial accounts.
Failure to disclose offshore accounts can result in heavy fines, tax penalties, or even legal action. However, when used correctly, offshore accounts serve legitimate purposes such as international transactions, estate planning, and investment diversification.
How Offshore Banking is Enforced
The days of absolute banking secrecy are over. Since the introduction of CRS in 2018, tax authorities worldwide have cracked down on undisclosed offshore assets. Here are a few key examples:
Switzerland’s Secrecy Crumbles
• Over 3.1 million accounts worth €1.3 trillion were reported in the first year of CRS.
• Countries like France, Germany, and Italy used this data to launch tax audits on individuals with undeclared Swiss accounts.
• Many account holders voluntarily disclosed assets to avoid penalties.
Spain’s Offshore Crackdown
• Over 11,000 undisclosed offshore accounts were uncovered from 2020-2023.
• Tax authorities recovered millions in unpaid taxes and issued heavy fines.
• High-profile cases, including football stars like Cristiano Ronaldo and Lionel Messi, highlighted the risks of offshore tax evasion.
UK’s HMRC Recovers £570 Million
• The UK’s tax authority identified over 150,000 residents with hidden offshore accounts.
• £570 million was recovered in unpaid taxes.
• Stricter penalties were introduced for failure to declare offshore wealth.
What This Means for Superyacht Crew
Superyacht crew frequently work across jurisdictions, earning salaries in different currencies and often living outside their home country.
This can make offshore banking an attractive option, but it’s crucial to remain compliant with tax laws.
Key Considerations:
• Know Your Tax Residency – Your tax obligations depend on where you are officially resident, not just where you work.
• Report Your Offshore Accounts – Avoid penalties by declaring foreign accounts where required.
• Seek Professional Advice – Offshore banking and tax laws are complex. Consulting a financial adviser who understands the yachting industry can help navigate the rules effectively.
Final Thoughts
Offshore banking is a useful financial tool when used correctly. However, with increasing transparency and global information-sharing agreements like CRS, hiding offshore assets is no longer an option.
Superyacht crew should approach offshore banking with full awareness of their legal responsibilities to ensure financial security without unnecessary risks.
To make sure you are doing it properly, feel free to contact Tom
