Wall Street Daily

Would You Score An “F” in Diversification?

I spend a lot of time with entrepreneurs and investment professionals in my travels.

And over the years I’ve found that there are two primary reasons why they explore foreign markets: asset diversification and protection.

I can’t say I’m surprised. Just look around at all the land mines… Government tax policies, the broken legal system, destabilized economies – and those are just a few of the many risks to your assets.

Worse yet, those dangers lurk around every investment corner. But that doesn’t mean there’s no hope of ever having any peace of mind.

On the contrary, you can enjoy the upside of foreign markets without wanting to bury your head in the sand every time the market hits a rough spot. Here’s how…

Look to Foreign Lands

These days, true protection and diversification means having to explore unfamiliar opportunities. Namely, those in foreign and emerging markets.

My own traveling experience has shown me that time and again there’s an astounding amount of opportunity in the rest of the world, beyond our borders. Especially in real estate (more on that in a moment).

It’s not just my own investment success that bears this out, though.

For example, on my last trip to Argentina and Uruguay, I spent some time with my good friend, Doug Casey.

In a nutshell, Doug has been traveling and researching opportunities for decades, living and investing all over the world.

His travels have led him to more than 150 countries.

Doug’s newest, and arguably his most successful, large-scale venture is a place located in the northern part of Argentina, called La Estancia de Cafayate.

A five-star golf, wine and equestrian development, it caters primarily to global investors looking for both a place to diversify assets and to live either part or full-time.

The place is close to being sold out, and after spending a few days there, I can see why.

It’s an idyllic combination of Northern California wine country, Colorado horse country and Arizona golf heaven – all at the majestic foothills of the Andes Mountains.

But it’s not just the natural beauty that attracts attention. Investors are happiest of all to find that Argentinean real estate is one of the few overseas investments left where one can diversify out of the U.S. dollar without laborious reporting requirements.

If I’ve got you, and you’d like to learn more about La Estancia, contact Dave Norden at info@laest.com. He’s one of the architects of the property, so he knows it inside and out.

You can also visit their website. In any case, prepare to be blown away!

It May Be Bad Here, But…

While the U.S. housing market continues to struggle, real estate overseas, on the other hand, is fast becoming the investment of choice.

More and more, investors are adding foreign real estate to their portfolios for proper diversification and asset protection.

There are several reasons for this shift.

First, buying real estate can be a productive investment, as not all real estate is merely “residential.”

In Argentina’s Mendoza region, for example, many foreign investors are looking at vineyards, as the demand for Argentinean wines is soaring. And in places like Uruguay, farm and timberland are attracting attention.

Second, real estate in these regions offers a combination of ease of investment, strong appreciation potential and consistent incomes. These are factors that many investors are looking for – and that they’re not finding back at home.

Yes, the opportunities are halfway around the world. But I’m increasingly seeing “normal” people join the global real estate investing crowd. With some preparation and forethought, there’s little standing in anyone’s way.

If you’re interested in learning more about foreign markets or are curious about the opportunities they provide, my book, Where in the World Should I Invest, should have you well on your way.

Ahead of the tape,

Karim Rahemtulla