Jeffrey Lipton, Barbados, Remarks on Foreign Funds in 2016

It is common knowledge that many markets across the globe are experiencing a tumultuous start to the year. A tumultuous market leaves investors in a precarious position as they attempt to juggle investment risk and return. Finding fruitful investment opportunities in the wake of global uncertainty may be tricky, but it is not impossible.

As economies around the world ebb and flow, strategic foreign investment can help bolster diverse portfolios and offer some major economic gains for those who are willing to dive in.

Case in point, a recent article from the Chicago Tribune touts Europe as a safe and strategically intelligent investment haven.

“The case for Europe is strong. The Continent’s economies are gaining traction from rock-bottom interest rates, a falling euro (which helps boost exports) and pent-up demand,” says Anne Kates Smith of Kiplinger Personal Finance http://www.chicagotribune.com/business/sns-201512170930–tms–kplngmpctnkm-a20160104-20160104-story.html

Kates Smith points out that European markets are expected to outperform their North American counterparts this year.  “Stocks in Eurozone markets trade for less than 14 times estimated 2016 corporate earnings, compared with a price-earnings ratio of 16 for U.S. stocks,” she said. “Moreover, earnings should rise by about 8 percent in 2016, compared with 6.5 percent for U.S. companies” http://www.chicagotribune.com/business/sns-201512170930–tms–kplngmpctnkm-a20160104-20160104-story.html

The foreign investment sector is big business around the globe and generates $1 trillion dollars of transactions each year. With that said, choosing a country, business and stock to invest in can be difficult, as countries around the world compete for a share of that trillion dollar investment market.

In mid-January, US News published the annual rankings of Best Countries to Invest In. While Germany and Canada took the first and second place spots for best countries in 2016, they were ranked 20th and 27th for countries to invest in.   http://www.usnews.com/news/best-countries/best-invest-in

Interestingly, the top spot went to India.  With a $1.9 trillion GDP and a skilled work force, India’s growing economy is ripe with investment opportunities.

Jeffrey Lipton, Barbados executive and former President of Permanent Value Asset Management (PVAM), a Barbados investment management firm, advises his clients to look for unique investment opportunities. “Investing in non-correlated funds or innovative tech companies can diversify an existing portfolio while also offering the potential for return on investment,” explains Barbados’ Jeffrey Lipton. “Right now, non-correlated funds present less risk, which is what many investors are looking for.” https://about.me/jeffreyliptonbarbados

However, Lipton is also quick to point out that, like any investment, there is always a level of risk involved. “No stock is a sure bet all of time.  With that being said, there are ways to gauge and monitor investment opportunities before you delve in to make sure it is the right choice for you,” Jeffrey Lipton adds. http://jeffreyliptonpermanentvalue.brandyourself.com/

Non-correlated funds, like those Lipton describes, are considered safer in the midst of economic upheaval.  According to Invest In This, “When the global economic outlook appears uncertain and on the brink of another recession, equity markets reflect this reality in terms of greater than normal volatility.” http://www.investingthesis.com/economics/4-investment-ideas-that-provide-income-and-are-non-correlated-to-equity-markets/

They advise investors to look for non-correlated assets and to look for portfolio managers who have experience in maintaining capital during financial pressures.

2016 may shape up to be a year for bold investors who are willing to get involved in emerging markets.  As the Chicago Tribune article highlighted, risk-tolerant investors can zero in on  robust markets around the globe like the consumer-driven economy of India.