In the next few years, expect a big change in stock market trends—especially when it comes to considering global investments.
Investors usually feel more comfortable putting money to work in companies close to home. The technical term for this is “home bias,” and researchers find that one persistent trend in investing is the inclination by investors to favor their home stock market.
One team of researchers even found investor preference for companies located in their home city or state.
Why “Home Bias” Shouldn’t Apply to Investing
I think it’s great that investors back local companies where they shop or where their friends work. But when you really think about it, this home bias is puzzling. Why should the world’s best companies with the best growth prospects just happen to only be in America or wherever your home country happens to be?
With investing, where a company is based means less and less; what it does and how it performs are what matter most now.
This is especially true for emerging markets, as the value of emerging markets plays catch-up to their contribution to global economic growth and their share of the global economy.
The Time to Invest Globally is Now
While no one can predict how markets will move going forward, it seems smart to start taking some of your profits and adding more overseas exposure to your portfolio.
Though it won’t be anything resembling a straight line, over time the market value gap between U.S. stocks and other global stocks will narrow.
The time to buy overseas stocks is now, but the strategy you use to take advantage of this mismatch is critical.
This Global Stocks Investing: How to Pick the Best Stocks from Around the World Investor Briefing will show you exactly how to proceed with a global investing strategy.
You can make really big money with global investing, as part of your overall strategy for building your wealth so that you can be financially free and secure—you just have to know how to navigate the global markets.
In this Investor Briefing Global Stocks Investing: How to Pick the Best Stocks from Around the World, you’ll get lots of ideas about global-stock recommendations for helping you grow your wealth, including:
- Investing for the Future: Think Global: Get the big picture about how a global investing strategy can work to make you some big money.
- Robots (and This Stock) Are the Future: When investing in robotics, don’t overlook this Japanese stock!
- Investing in Monopoly isn’t Just for Kids: Don’t let false assumptions about monopolies keep you from profitable investments—read about it here!
- Everything You Need to Know About Investing in Fintech Right Now: 7 stocks you should have in the fintech portion of your diversified portfolio.
- 6 Rules for Investing in the Best Global Stocks: Learn the basic rules to making profits from stocks all over the world.
- The 3 Best Canadian Stocks to Buy Now: Best opportunities for making profits with Canadian stocks.
- Understanding Global Investing: Learn the advantage of—and opportunities for—investing around the world.
This Investor Briefing Global Stocks Investing: How to Pick the Best Stocks from Around the World is your best guide to understanding everything about global investing, so that you can prosper from this advice and build a fortune!