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Why You Should Seriously Consider Investing Abroad

Emily 13 de November del 2016 High Life
International investment can be a drag sometimes, what with the extra paperwork, exchange rates and rebalancing capital. However, it can also be a new source of income through additional market opportunities. Here, we’ve got some of the top reasons why you should consider some international investments.


Top reasons to invest internationally

  • Investors won’t have all their money gambled to a single economy which may or may not crumble at any given time, as history has proven. Academics in the field believe it to be a bad idea to have more than half of your stocks in a single country or market area. Through studies, they reached the conclusion that broadening as much as possible can provide the safest and best long-term outcome.
  • It is possible to invest in markets that aren’t popular or simply don’t exist in the country of the investor, thus creating new opportunities to increase one’s wealth.
  • International stocks can outperform the stocks of the investor’s country. For instance, from 2000 to 2009, US stocks decreased while stocks in other countries had an upward turn, bringing joy to those who invested abroad and sadness to those who didn’t.
  • International investors earn in different currencies. This could be risky, as sudden drops may occur in the value of a given currency; however, it is a risk worth taking because it means the company is far more solid than others. It provides more credibility and reduces the risk of volatility.
  • Long term performance of the stocks is better. There’s a whole world of market capitalization outside a single country, adding to the investor’s income in the long run. If it doesn’t provide more income, it’ll provide at least a similar amount.
  • It exposes the investor to foreign markets, growing more than would be possible if they were to stay in a single country, hence increasing income through sales.

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