Our world is becoming more and more connected, whether it’s through the power of the internet, or through trade barriers being reduced and market activity between countries reaching historic highs as a result. However, despite our globe becoming more integrated, many investors choose portfolios based solely on US investments. If you’re also ignoring investment opportunities outside the US, you may be missing out on an opportunity to more successfully invest your wealth for the long-term.
Why should you diversify globally?
The rise of globalization has made investing in foreign and emerging markets more feasible and has created opportunities for investors like never before. So should you diversify globally in terms of your portfolio? The answer is not just “yes,” but a resounding “yes.”
Despite many investors’ focuses on US investments, you may be missing out on a chance to further diversify and successfully invest your wealth for the long-term. In 2014, the total developed world stock market capitalization was $33 trillion, with $14 trillion representing the international stock market. Eight percent of the world’s stock market opportunities are in the UK alone.
Global connectedness notwithstanding, global investors get to enjoy the benefits of occasional opposite performance on a larger scale. For instance, international markets may be up, while US markets may be down, and vice versa. In times of increased volatility, this can allow you to better weather the ups and downs in order to successfully invest your wealth for the long-term.
At LexION Capital, we can focus on investments all across the globe as part of your portfolio, based on your goals and needs. In fact, healthy diversification is so vital that it constitutes one of the five pillars that ground our approach. We are independent, customized, transparent, experienced and global.
Are you or someone you know interested in a global investment perspective? See more of our updates each week on our LexION blog. And don’t hesitate to reach out to us with questions about how our services might be right for you.
