Joel’s Resource Report – where are you invested? #SO4 #CAI #LGO #HUM #WAF

Joel’s Resource Report – where are you invested? #SO4 #CAI #LGO #HUM #WAF

A slightly different take on the Resources Report - where are you invested?

Resource investors often find themselves investing in countries which bear little resemblance to the Western world. Of course, everywhere has some country risk.

Even investing in the US isn't without issue - fancy being invested in US retailers or insurers whilst violent mobs are looting shops? I thought not.

When investing in countries that are prone to additional issues, it makes sense to demand a Country Risk Premium.

Risk factors could include:
  • Political instability
  • Economic risks such as recessionary conditions, higher inflation etc
  • Sovereign debt burden and default probability
  • Currency fluctuations
  • Adverse government regulations (such as expropriation or currency controls)
I'm invested across multiple locations. Corruption, theft and legal issues are other areas of concern for me

One company I was invested in was ASA Resources. It had millions stolen by a dodgy Chinese CEO and the company was taken over by a Chinese investor who may have been connected.

In this article, I'll cover three countries where I have investments and explain how I view the risk.

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