[Estimated time to read: 3 minutes]
Oil prices are falling – great news, right? Cheaper fuel, travel, clothing… cheaper everything?!
Up to a point, yes.
If you're an expat, chances are you either work in a company connected to the Oil Industry, or you live in a country dependent on it.
In which case, you already know oil prices are hitting 12-year lows.
So what should you do?
[Estimated time to read: 5.5 minutes]
They say the rich are different – perhaps driven by envy, misunderstanding or perhaps it's true. What's pretty clear is that the rich don’t stay that way if they aren't smart about what they do with their money.
You've got a plan. You've trained, prepared, thought and trained a bit more. You've scoured the land for the biggest and the best. (If you're New Zealand, you've scoured other lands for even bigger and better). You're Team England - superb athletes from the world's biggest rugby-playing population, trained, honed and pampered. And you just lost. Yes, it's time to trawl the Rugby World Cup 2015 for lessons on investing!
There’s an old joke about a visitor to New York who, admiring the gin palaces of the bankers and brokers, asked ‘Where are all the customers’ yachts?’ It’s funny, until you’re the customer whose unintended generosity and, perhaps, naivety, funded the gleaming cruiser bobbing gently at its mooring.
We recently wrote about the nature of investment markets and were delighted by the response from our clients and friends. A lot of people asked us about the investment plan that we referred to, so we thought it would be valuable to further explain how we think expat clients can set their portfolios up to ensure that they know how to respond when markets move around. In much of life, true 'opportunities' can be difficult to spot - much of the time, they're only obvious with hindsight. We think that an offshore investing plan helps you to identify opportunity, and pushes you to act even when volatility and headlines make it hard to do so.
When markets gyrate, it can be tempting to try and pick the bottom in the hope of buying a bargain.
At its extreme, day traders move in and out of stocks frequently, trusting their analysis or instinct to tell them when shares have sold off, or when they have peaked.
When something bad happens – an accident, death in the family, or unemployment – our emotions launch us into a well-recognised sequence that ends, finally and thankfully, with acceptance. We then ‘move on’ and the great cycle of life continues.