Just where do you invest when the world’s your oyster?
Just where do you put your money if the financial shackles are released by investing in a QROPS?
Unlike a UK pension, QROPS investors can invest in almost any tradable paper or commodity in any currency - but often widening the choice increases the risk of putting cash in the wrong place.
Like all investment advice, the first good tip is don’t put all your eggs in one basket, because if you drop it the likelihood is they’ll smash and you’ll be left with nothing.
During a recession, investors are inevitably looking for a safe haven giving prospects of reasonable growth.
Emerging markets - like the BRIC economies of Brazil, Russia, India and China are generally the first stop for most investors. Each of the BRICS has its own financial problems, and is looking at how to create a second global currency to untie the knots between their economies and the US dollar.
China has special problems - the economy has slowed in the recession but the economy relies on exports and until the US and European economies recover, some doubts exist about just how long the economy can keep expanding with the bubble bursting.
Brazil is an interesting market - a massive oil and gas field has just been discovered offshore that makes the oil-dependent economy of neighbouring Venezuela suddenly look like a tiddler in a big pond full of sharks despite being a top 10 world oil producer.
Single commodity reliance has problems - as the oil-rich nations of the Middle East have discovered.
Eastern Europe’s new boys in the European Union are also having problems. Lack of infrastructure and a state-control mentality have held some economies like the Baltic States back.
Then there’s debt and currencies. Possibly many investors would rather stack their cash under the bed than buy in to economies and currencies in trillions of debt.
The advantage of a QROPS is you can hire a fund manager to keep up with global investments for you. With a QROPS, the investment possibilities may be endless but perhaps keeping your money safe is better than being sorry after making a rash investment decision.
