As the Global economy becomes more accessible, and amidst a global shift toward mindful investing, it makes more sense than ever to consider an investment strategy that involves selecting global investment instruments as part of your investment portfolio. Often the decision to invest internationally is done to broaden diversification, spreading your risk over foreign markets and companies. It is the proverbial “Don’t put all your eggs in one basket.” ratcheted up to cover the world.
Global investment can add new sources of return, while mitigating some risks found in specific countries and economies. Generally, global investing expands the eligible instruments for an investment portfolio beyond domestic investments in stocks, bonds, mutual funds and options and futures.
There are some additional risks:
- Fluctuations in currency exchange rates
- Changes in market value
- Significant political, economic and social events
- Low liquidity
- Less access to important information in real time
- Varying market operations and procedures
If you have never expanded your investments internationally, you might find speaking to a financial advisor helpful. Find someone who listens to your goals and helps map a path to reach those financial goals at InvestmentsStore.com.