Costa Rica Investing – How the Decline in the US$ Affects You!

Now after looking at these returns, you may be asking yourself; “Am I diversified globally and how do my returns compare to the results above?”

And please remember! We’re not showing you some high-flying, incredibly risky internet stock index listed on the Nigerian stock exchange here… These are well developed and highly regulated financial markets in Europe…




One of the problems investors face in trying to invest ‘internationally’ is that many large non-US companies are in fact highly correlated to the US market and consequently not as diversified as you might think. Many large-cap companies are related more to their ‘industry’ rather than their home country.




For instance, if you are looking to invest in a fund that specializes in Japan, big companies like Sony, Toshiba, Yamaha and others are very much correlated to the US market since a big percentage of their sales and shareholders are in the US. Another example would be Finland, where the share price of the telephone giant Nokia is hardly correlated to the Finish economy.




The point is that if you are invested in international mutual funds that specialize in at large company stocks in Latin America, Asia, India, Japan or Europe, you are probably not as diversified as you should be.




So how do you make sure that your global mutual funds are not correlated with the US market?




For you to be more diversified, it is normally far more effective to look for well managed funds where the investments are in small to mid-size companies in their own countries.




For risk averse investors, we believe that global diversification is crucially important. Some say that you should “put all your eggs in one basket and watch it like a hawk.” We do not agree with that because no matter how ‘market wise’ you are or how closely you monitor the situation, unexpected shocks do occur and that can expensive if you do have all your eggs in one basket.

We are not just speaking of stock market ‘shocks’ either, any successful person should have a percentage of his liquid assets invested offshore for asset protection purposes… That next ‘frivolous and outrageous lawsuit’ you read about in the local newspaper may be about your company and how much you are spending on attorneys fees…




Protecting your assets ‘offshore’ is not just for the mega-wealthy. Any person who is concerned about lawsuits should try and protect their assets in any legal way that he can.




If you are a sophisticated international investor who wishes to discuss how to invest offshore safely, privately and profitably in the world’s most respected offshore hedge funds than please Contact Us

Andrew Makarik

to@welovecostarica.com

Andrew Makarik is the main editor of WeLoveCostaRica, a fan of this sunny country. He is also a loving husband and a has a lovely daughter. By being a devoted family man and the biggest Costa Rica fan, he wants to make more people feel at home there. WeLoveCostaRica unites people and helps them find new home or a new travel destination. This website is a friendly community where everyone can find not only information, but also new friends and travel pals. Andrew is also passionate about IT and programming, so he himself maintains a friendly atmosphere in this cozy environment of WeLoveCostaRica.com.