We at Maxim believe strongly that while the U.S. is still a very strong and important economy, it's standing as the dominant economic engine of the world is eroding and therefore all investors should begin to view the U.S. as simply one component of a globally diversified portfolio.
It is particularly important to Americans living abroad to adjust their investment mindset, as the risks to them are great. The most obvious risk of favoring U.S. investments is that their assets are heavily exposed to the economy of United States, even while their lifestyle is predominantly lived elsewhere. A related risk is that the investor's wealth is too tied to the dollar. This has been particularly painful over the past few years as the dollar has weakened dramatically. Finally, investing more of your wealth abroad should yield improved investment opportunities and greater portfolio diversification, which ultimately will add return while lowering risk in your portfolio.
Source: Maxim Global Wealth Advisors, By Andrew Fisher, CFA, CPA - 2008
Maxim is a premier wealth advisor for American expatriates residing outside of the United States. We are specialists in comprehensive wealth strategies involving investment management, tax strategies and financial consulting. We created our Knowledge Library in order to help expats increase their financial intelligence and to enable well-informed decisions. We hope you find this information useful and we invite you to contact us for more information on our wealth management services.
Maxim Global Wealth Advisors — www.maximadvisors.com
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