Portfolio Construction: The Mideast Wants Free Markets

A client called and asked somewhat nervously if, with all the turmoil going on in Northern Africa, were we invested in Egypt and Libya? The implication was that if we were invested in one of these two countries, should we sell? Or, if we were not invested in one of these countries, should we buy?

The short answer to my client’s question is no, we are not in Libya, and yes, we are in Egypt – but in just a handful of stocks that pass the concerns filters. I explained that we are also invested in South Korea, Brazil, Taiwan, China, India, South Africa, Mexico, Russia, Malaysia, Indonesia, Chile, Turkey, Thailand, Poland, Hungary, The Czech Republic, The Philippines, Peru, Columbia, Hong Kong, Israel, and Singapore. These countries are defined as The Emerging Markets, and all of our managed portfolios own stock in three Emerging Market asset classes, according to each portfolio’s risk tolerance. There are another 18 countries that comprise the International Market asset classes. These countries are considered more developed than the Emerging Markets. But that’s for another discussion. In total, each of our managed portfolios holds around 13,000 different stocks.

As to the question of buy or sell, I think the three concurring opinions offered in the video linked below answers that quite well. Click on the link below, and let me know what you think.

Global Diversification


About Paul Nichols

Paul is the founder of Financial Abundance, a Registered Investor Advisory firm and EDI, an Estate Planning Firm with offices in State College and Lewisburg. He has been working with individuals, families and businesses for over twenty years, including many Fortune 500 companies. He has educated tens of thousands of people through seminars, workshops and various international speaking engagements where he shared the stage with many notable individuals such as Ronald Reagan, Robert Kiyosaki (author of Rich Dad, Poor Dad), Mike Ditka, General Schwarzkopf, and Newt Gingrich to name a few.

In 2000, after many years of traveling to consult companies and individuals, Paul decided to relocate from Colorado to State College, PA (his wife’s hometown) to develop a local advisory firm.

Paul operates under the core belief that education plus understanding leads to clarity and confidence; resulting in peace of mind. He is a proud father of three and devoted husband of 20 plus years.

Some of Paul’s accomplishments:
Regular contributor to the Centre Daily Times, via the “It’s Your Money” blog
Featured in the movie Navigating the Fog of Investing
Regular contributor to Town & Gown as the publications Investor Coach
Host of the weekly iTunes Podcast, It’s Your Money
Member of the Western PA Better Business Bureau
Member of the Centre County Chamber of Business and Industry