In the world of politics, some world leaders see issues as black and white or we should do something or nothing. In the world of investing, companies that are multinational in size have investments in many countries. In an article by Sudip Kar Gupta and John Irish of Reuters, President Trump has threaten to impose sanctions on Iran. He has very good reasons to do so, however doing so put companies doing business in Iran at risk.

Iran has oil and one of the multinational oil companies France’s Total is involved in developing oil fields. In 2017 they signed an agreement to develop the South Pars field. Now that President Trump wants to impose sanctions, what happens to Total and should they go forth? France’s President was in Washington and will be discussing France’s interests with President Trump. Meanwhile since European countries has an agreement with Iran companies such as Allianz, Maersk Tankers, Siemens doing business in Iran they have suggested they will wind down Iran because the US is a bigger market. The concern is if European companies leave, Chinese companies will set in because the oil from Iran goes to China.

Linking to dividend paying companies, diversification is wonderful until it brings up other concerns and companies have to decide what markets are the most important. As you invest, look at the diversification of the companies in your portfolio are you satisfied with them? Are there companies you want less country diversification?

There are more questions than answers, till the next time – to raising questions.