Martin Lustgarten is an international businessman and investor based in Ponte Vedra Beach in South Florida. He has dual citizenship in Venezuela and Austria and resides in the United States. This enables him to make connections around the world, benefiting the investors and clients.
Since the Great Recession of 2008-2009, the economy of the United States and most of the rest of the world has recovered. However, in Venezuela the economy has gone downhill. Some place blame on the past administration and policies of the late Hugo Chavez. Some blame the current president Nicolas Maduro. Others point the finger at the United States and its allies in the Organization for American States. No doubt the huge drop in the price of oil since 2014 has increased the problem because oil is Venezuela’s biggest and most important export. It has buoyed that country’s economy for decades.
With the supply of U.S. dollars dramatically cut by the fall in the price of crude oil, Venezuela’s people have suffered from shortages of food, electricity and the most basic supplies. They have a hard time finding anything to buy with their own currency, the bolivar, so they seek out U.S. dollars.
By spreading his money between different countries, Lustgarten cuts his risk. Right now, everybody would consider the United States the better country to invest in. However, someday the people of Venezuela will stop the political chaos and economic collapse. Someday they will again become a developing country determined to return to stability and law and order. They will grow their economy. Nobody can predict the price of oil in the future, but many countries still depend on it, and will for years. That is true even as technology develops alternative energy sources.
Lustgarten is poised to play a major role in Venezuela. By helping to increase their supply of U.S. dollars, he is helping the people to survive the current crisis. And he could profit in the long term. As an intelligent and hardworking investment banker, Lustgarten stays on top of the trends. Diversification is the best way to protect his wealth. It spreads the risk out so a disaster in one country does not destroy his entire portfolio.