Your Offshore Investment Strategy

Summary: How’s your offshore investment strategy holding up in light of recent negative market movements?

When all around you others are losing their heads, their appetite for volatility, their commitment to their investment strategy and possibly even their will to put their money in other people’s hands following on from the turbulent couple of weeks we’ve experienced thanks to some slightly ‘interesting’ downward market movements, how’s your offshore investment strategy holding up?

There are those among us who are ready to throw in the towel and admit to being totally risk averse after all.  But at ShelterOffshore we feel that if you look to the long term, you straighten out your risk profile up front and you only entrust those around about whom you have conducted rigorous due diligence and go with your own carefully considered opinions, you’ll be doing the best you can for your offshore investment strategy and overall portfolio.

As many asset managers and investment advisers will tell you, having a part of your investment portfolio resting offshore and therefore exploring the diverse markets and opportunities that suddenly become available as soon as you cut the limiting ties with your own onshore jurisdiction, makes an awful lot of sense to an awful lot of people.

You are diversifying in multiple directions and in multifarious ways, and for those seeking a good balance within their overall portfolio this is appropriate action. 

However, in light of the high percentages that have been wiped off the global markets over the past couple of weeks and therefore off your annual profits and returns, does it still make sense to hold your offshore investment strategy path?  Would you be better off quitting the offshore arena and concentrating efforts on long term, government backed bonds or even just stuffing the mattress with your hard won wonga? 

Well, it’s a possibility and one that you will have to explore based on your own personal situation – however, what we will say is this – unless the basic fundamentals that you originally based your investment decisions upon have changed, you probably risk far more from cutting and running at this point that you do from staying the course.

Of course, we are not qualified offshore investment advisers and any information or opinion we impart cannot constitute advice!  But the facts of the matter are these according to Debbie Netto-Jonker, a financial planner with Netto Financial Services: - “the world economy remains healthy, and global equity markets are still reasonably priced… over the long term, the current adjustments to the US credit markets will be healthy.”

Therefore, continue to look to the long term - or if you weren’t already doing so, readjust and evaluate your investment objectives away from sharp yet unsustainable short term gains towards long term financial gains and security. 

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