Many of us are concerned with the increasing levels of U.S. government debt and bureaucratic regulations. As government spending and regulations increase, the burdens on our country to meet these government obligations will be huge. Some economists are describing what they are calling the “new normal” where economic opportunities in the United States will be lower.
While the challenge of doing business continues to increase in our great country, other parts of the world do not have such onerous levels of taxation and government regulation. Some countries once had high tax and compliance costs, but they lowered these burdens as they discovered how harmful they are.
I hope we will find an appropriate balance between government programs, regulations, and taxes while giving people the freedoms and opportunities to work and support themselves. In the meantime, there may be enormous investment opportunities in other parts of the world. I recently read about German-based automaker Porsche’s plans to enter 15 new countries by the end of the decade as part of its growth strategy. This announcement was made by Bernhard Maier, the Porsche global sales chief, at the opening of their largest dealership in the world in Shanghai. What is also interesting is that most of their expansion will be in Africa. Although the United States is currently their largest market, they see great opportunities for growth in Asia, Africa, and other parts of the world.
We believe it is wise for the long-term investor to avoid putting all their eggs in one basket (or one country). We believe it is prudent to take a global view. Even if the sun begins setting economically on the United States, there may be good opportunities for growth in other parts of the world.
For more insight, listen to Jentner Wealth Management’s weekly podcast by clicking here. Or download Jentner’s white papers on The Four Cornerstones of Prudent Investing and The Active Versus Passive Investing Debate.