Global turmoil, economic volatility and overseas investments

On Behalf of | Jun 3, 2022 | International Tax and Business Entities |

With much of the world caught off-guard by the recent events in Eastern Europe, the far-reaching impact has influenced a number of people across the globe. People with international investments, for example, have expressed concern about the reverberations of war and economic turmoil on returns.

In light of current events, investors with assets overseas want to move their money closer to home and away from volatile conditions. Exploring other means of diversifying their assets might help people to identify their next steps.

Shifting investments

There are a number of reasons why investors might move their money around. According to Investor.gov, social, political and economic events are some of the biggest risks of overseas investing. Similarly, those events are also a common reason why those same investors could move quickly to protect their assets when global turmoil appears imminent.

Arguably the biggest challenge investing brings is the uncertainty of when to cash in on profits. Irrational behavior, driven by fear, for example, might result in substantial losses. However, overly optimistic behavior can have just as detrimental of an effect. Investors should carefully assess their situation and run multiple scenarios prior to deciding how and when to shift their portfolios.

Diversifying investments

People who desire to diversify their investments may find a lot of success overseas. However, events such as the Russia-Ukraine conflict can threaten asset security and returns. U.S. News suggests some alternative ways that people might consider using to diversify their portfolio. These may include the following:

  • Customizing investments
  • Adding depth and complexity
  • Varying size and scope
  • Using asset allocation

Investors might benefit from working closely with their legal team to optimize their investments. With the right strategies, investors can minimize the impact of global events on their returns.

For more information on how we can assist your investment needs, contact Urban Thier & Federer, P.A. to arrange a consultation.