Many expat investors believe they are well informed when in reality they would have a difficult time explaining the risks and opportunities of investments they have made. Why? Do we believe we know it all just because a quick Google search throws up a plethora of information?
The safety of the investments you make with your hard-earned savings is clearly becoming more and more important. Even with all the evidence available of expats being burned on investments, we still see many individuals with far less understanding than they should have. They may have an awareness of impending danger, but expats in their naive wisdom regularly make fatal errors because they simply do not comprehend what they are investing in.
When I discuss risk factors with expats they often come up with totally irrational ideas regarding the actual risk realities that exist today. Some believe that buying shares in a single company is perfectly normal and relatively risk-free. I had a conversation with an expat, sometime ago, who felt that buying shares in BP was safe. Weeks later the Deepwater Horizon disaster occurred and this person changed his mind about BP. However, investing in a single corporation remained a low-risk concept.
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