Only one-third of the world’s stock market capitalization comes from the U.S. So, it doesn’t make sense for you to limit your investments to U.S. markets — there is so much more out there. Taking a global investment strategy is a much better way to make money. Take a look at these four secrets to making more money with a global investment strategy.
Diversify Your Portfolio to Minimize Risk
Having a diverse portfolio might not seem like a secret, but you’d be surprised how many people don’t use this little bit of advice. There are so many different investment opportunities that it doesn’t make sense to choose only a few, especially if they are all in U.S. markets. You should diversify your portfolio with a global investment strategy to take advantage of fluctuating economies. Yes, global investments are more risky, but there is no reason to lose sleep over them. You should have a good mix of safe and risky investments to protect yourself in the event that one of your investment decisions doesn’t pan out.
Be Aware of Currency Valuation
Another secret to making money with a global investment strategy is to be aware of currency valuation and how it affects your investments. The value of currency fluctuates depending on how a country is doing economically — that’s why the U.S. dollar has been lower since the 2008 economic recession. However, currency values can change rapidly, too, even on a daily basis. So, you should invest in stocks from countries where the value of the currency is rising to increase your dividends.
Know Taxation Laws and How they Affect You
In the U.S., you have to pay taxes on all of your investment dividends. However, some global investments fall into a taxation loophole that may allow you to keep more of your money. So, you should invest globally to take advantage of lower tax rates and different laws depending on the investments you make. This is a great secret that has been helping investors make more money for a long time. Your accountant can help you better understand taxation laws and how they affect your global investment strategy.
Invest Some of Your Portfolio in Developing Countries
Developing countries are a great place to invest your money, and one of the best kept investment secrets. This is because the economy in developing countries is a lot more volatile than large, stable countries. You can invest when the economy is low and profit as it improves. You do have to take a closer look at political risks and trends before investing, but developing countries offer a major payout to investors who are willing to take the risks.
If you’re ready to make more money by expanding to a global investment strategy, go to the contact information for Fisher Investments to find a qualified investor to help you. It’s never a good idea to enter a market without doing your research and getting advice from experienced investors, and Fisher Investments take a lot of the guess work out of it. Do you have any advice for people looking to have a global investment strategy?