expat investment

By Peggy Creveling, CFA, and Chad Creveling, CFA

Regular portfolio reviews are critical to investment success, especially after big moves in the equity, fixed income, and currency markets that can occur from time to time. Unfortunately, many expats never get around to reviewing their portfolios or if they do, don’t approach the process in an organized way that will get results over time. 

By Chad Creveling, CFA and Peggy Creveling, CFA

We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten. - Anonymous saying

The above often-repeated saying can be applied to many areas of life. When it comes to investing, we frequently see people overestimate what they can achieve in any given year and underestimate what they can achieve in the long term - often to their detriment.

By Chad Creveling, CFA, and Peggy Creveling, CFA​

When it comes to losing weight, most agree that short-term fads don’t work. The only permanent solution is to maintain a sensible diet and exercise plan over time. And it's the same with investing. Get-rich-quick schemes or investments won’t work.

By Chad Creveling, CFA, and Peggy Creveling, CFA​

With the introduction of the U.S. Foreign Account Tax Compliance Act (FATCA), most expat Americans have found that trying to avoid U.S. tax by investing offshore doesn’t work. American citizens and green card holders are subject to U.S. tax on all of their global income, even when they live outside of the United States.

By Peggy Creveling, CFA, and Chad Creveling, CFA​

Although it may not be common to have problems with a financial custodian, bankruptcies and fraud do happen. Although these types of issues may occur most frequently in the offshore world where regulators may not provide solid oversight, they can also happen in larger or better-regulated markets. This is especially the case during periods when market volatility is high and financial firms experience increased liquidity needs, margin calls, and counter-party risk.

By Peggy Creveling, CFA, and Chad Creveling, CFA​

Volatility in global markets picks up sharply as investors’ worry grow and discontent spreads. Talking heads on financial news programs discuss uncertainty over economic forecasts while U.S. treasury yields plunge and crude oil and gold prices rise and fall. For expatriates trying to manage their long-term portfolios, there are times that financial news flow and market volatility can be particularly unsettling.

By Chad Creveling, CFA, and Peggy Creveling, CFA

Volatile markets make for challenging times for investors. Wild swings in the market can trigger a roller coaster of emotion as investors understandably fear destruction in portfolio value and a loss of financial security. The news media, with eyeball-seeking urgency, stridency, and sense of catastrophe, serves to heighten the fear and the impetus to take action.

By Peggy Creveling, CFA, and Chad Creveling, CFA​

U.S. tech stocks are up one day and down sharply the next. European stocks fall on reduced profit expectations. Global stock markets warm to a thaw in the trade war. China’s muted stimulus lowers hopes of a new stock market rescue. Bond funds are hit by the biggest withdrawals in several years. Talking heads on cable financial networks argue about asset price bubbles and the likelihood of a market correction.