1.
By www.ProfitableInvestingTips.com

2.
As the US stock market cools off, many
investors may be looking outside of
America for investment opportunities.

3.
When doing so, it is a good idea to
consider which offshore investments
hold promise and which offshore
investments are risky.

4.
Last year we asked, why aren’t you
investing offshore?

5.
The best deals in stocks today are not
in the USA but in foreign markets. Why
aren’t you investing offshore?

6.
The United Nations World Investment
Report for 2016 shows which countries
investment money is flowing into and
in what amounts.

7.
In 2015 money flowing into Asia and
Europe each exceeded that flowing into
North America.

8.
In the years immediately after the 2008
market crash and onset of the Great
Recession foreign direct
investment came into the USA.

9.
The largest gain in foreign direct
investment on our chart is in the USA
followed closely by Japan (113 billion
to 100 billion.

10.
As a percentage increase Japan out
performs everyone with an increase of
more than 400%.

11.
Other significant performers are South
Korea with a more than 200% increase
in foreign direct investment and Hong
Kong with a twenty-five percent
increase.

12.
It is significant that the BRICS nations
which were thought to be ready to
move up economically lost as a group.

13.
Smart money follows opportunity and
flees from excessive risk.

14.
Which gets back to our initial question,
which offshore investments are risky
today?

15.
Which Offshore Investments
Are Risky: A list of countries
to avoid

16.
Market Watch looks at the issue of
which offshore investments are risky
and lists 7 market traps to avoid.

17.
The countries where they see excessive
investment risk are these.

18.
 Argentina
 Brazil
 China
 Philippines
 Poland
 South Africa
 Turkey

19.
Here are snapshots of what they say
about each offshore “investment trap”
on their list.

20.
Argentina

21.
Argentina has been on the blacklist for
some investors for a while, given its
history of sovereign debt problems.

22.
And it’s looking grim on that front
once again.

23.
The current challenges, including debt
tensions and rising inflation, are quite

24.
Argentina has been an economic
basket case for years.

25.
The country will need to carry out
serious and permanent economic
reforms to make it a non-risky place to
put your money.

26.
Brazil

27.
Brazil was a bright shining star of the
BRICS nations.

28.
Then China cut back of commodity
imports and Brazil tanked.

29.
Corruption, labor problems, and
inflation are all issues that make
investment in Brazil risky.

30.
China

31.
ETF’s that track the Chinese markets
are all off this year.

32.
The common claim is that it’s simply
the fallout of trade-war posturing.

33.
But remember, there have long been
structural challenges to China
investments that include massive debts
in both the private and public sector.

34.
In fact, a leaked report from a
government-backed think tank warned
of a “financial panic” that could be
caused by cascading defaults and a
liquidity crisis.

35.
We have been concerned about Chinese
capital flight for a couple of years.

36.
And perhaps the most dangerous issue
for China is its huge debt burden.

37.
China needs to do what Taiwan, Japan,
and South Korea did years ago.

38.
They need to transition from an
economy heavily managed the state to
one driven by the market.

39.
These are the issues that make
offshore investments risky in China.

40.
Philippines

41.
While the Philippines has been one of
the fastest-growing economies in Asia,
with annual GDP growth rates just shy
of 7% for the last few years, it now
faces the very real challenge of
runaway inflation thanks to that brisk
growth rate.

42.
Then add in the uncertainties caused
by the country’s dictatorial president
and you have good reasons to avoid
investments in the Philippines.

43.
Poland

44.
Poland is considered a bright spot
among the nations formerly in the
Communist Block. But there are
problems.

45.
Unfortunately, Poland’s growth has
been built largely on consumption
fueled by government entitlements,
which is something many investors
think is unsustainable despite the
impressive headline numbers.

46.
If you have made money in an ETF tied
to this economy it may be time to take
little of that profit off the table.

47.
South Africa

48.
What was once Africa’s strongest
economy has, like Brazil, seen the
effects of lower commodity sales.

49.
As growth and optimism has
evaporated, so has lending.

50.
And worse, at the end of 2017 S&P
downgraded South Africa’s debt to junk
status as the economic outlook
appeared increasingly grim.

51.
South Africa is another risky country
for offshore investments.

52.
Turkey

53.
ETFs that track investments in Turkey
are down 30% this year.

54.
The county just re-elected a dictatorial
president who due a constitutional
change will have more power than ever.

55.
Inflation is on the rise and interest
rates are up.

56.
This is an unstable situation and a risky
country for investment.