Here are five reasons why we should choose global investment strategy.
1)Investing in one country can increase the so-called "Japanese" risk. It is the possibility of your investment melting on a single unhealthy stock market. Such a story happened to Japanese investors in 1989. Those who invested globally made a profit on growing international markets.
2) The days of the "strong" dollar seem to be in the past. Outrageous budget deficit rises questions again about the futuure of the dollar. Finally, the dollar can fall again and if it happens investors who have foreign assets will have some benefits.
3) For example, U.S. stock market is the largest and the best known market in the world. So, it can be probably overestimated more than other foreign markets. This is bad news for investors.
4) Investing globally your opportunities are opened to the rapid growth on emerging markets, as well as for older, more developed markets. Who knows, which economy will skyrocket the next quarter?
5) Global Investing can minimize the risks at key moments. Professor of Economics, Philippe Jorion says that global investment helps investors greatly.
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