After being involved with international investing for a few years, it’s easy to fall into a pattern as you continue to buy and sell assets. The pattern is usually not discernible at first but slowly emerges as you figure out what type of deals seem to work well for you and which ones don’t provide the returns desired. While it is natural to get into a bit of a rut with your offshore investing strategies, it also pays to shake things up now and then.
Buying the Same Type of Investment?
One of the ruts that can develop with international investing is purchasing the same type of asset over and over again. For example, perhaps you’ve had great success with stock options associated with a particular industry. Based on that success, you continue to add shares from other companies that have something to do with that industry. While you are generating money, you are also making yourself open to a greater degree of risk.
Stop and think for a moment about what would happen if that particular industry experienced a worldwide decline. All those shares that are providing a steady stream of dividends would suddenly be worth a fraction of what you paid for them. Since those shares compose a considerable portion of your international investing portfolio, those declines could hit you quite hard. Even if you are fortunate to dump them at a loss, it could take years to recover.
Broaden Investments by Country
To avoid getting into an international investing rut that could have severe consequences down the road, identify some ways to put your experience to good work. For example, consider broadening your portfolio to include investments found in more countries. This approach helps to insulate you from issues that may develop due to shifts in the economy or the political situation within a given nation. Growth with assets based in one country will help to offset temporary losses with assets found in a different nation and help to keep your net worth relatively stable.
Invest in More than One Industry
Another approach is to not associate yourself too deeply with a given industry. While all those shares of telecommunication stock may be doing quite well, that is not necessarily a clarion call to purchase more. Look around for other opportunities, even those associated with emerging industries. Doing so provides the opportunity to replicate your success with those other shares and allows you the change to balance those holdings with something completely different.
Add a Few More Investment Types
As you revamp your international investing strategy, consider adding some different kinds of investments to the mix. Check with the institution that provides your offshore banking accounts, and see what they can offer in terms of real estate deals, money markets and other opportunities. One of these institutions is Caye Bank. This will also give you a chance to explore the tax advantages of international banking and how those benefits relate to your particular situation. Step outside your comfort zone, and consider giving currency trading a shot.
Once upon a time, you first stuck your toe into the waters of international investing. At the time, it was exciting but also a little intimidating. The same holds true as you seek to broaden your investments and include something a little new and different. A little anxiety is not a bad thing; in fact, it can help prevent making a serious mistake. Investigate the opportunity thoroughly, and if it looks as if the potential returns are in line with the level of risk involved, give it a try. With a little luck, the new investment may serve as the inspiration for some very lucrative deals in the future.