Gobal stock inflows topped $1 trillion so far in 2021. To put that figure in perspective, it’s more thlan the previous 20 years combined.
There’s a renewed interest in international investing because of the COVID-19 pandemic. Governments are spending more money than ever to stem the economic fallout.
There are more investing opportunities abroad than ever before. Are you ready to learn more about these opportunities and how to get started?
Reason for Investing in International Markets
Why do investors flock to international markets? The main reason is to reduce the risk of losses. It’s rare when all stock markets drop on the same day.
If the US markets take a sharp dive, your foreign investments can pick up some of the slack if they see increases.
The level of diversification should be around 10% for conservative investors and up to 25% for aggressive investors.
Another reason why international investment is a good addition to your portfolio is growth. A smart international real estate investment could have a fantastic payoff.
International Investing Opportunities
What kind of investment opportunities are there in foreign markets? The first is government debt.
This is what many investors are putting money in right now because of the tremendous amount of COVID-19 relief spending. Investing in emerging markets or advanced markets can help you see a return on investment while limiting your risk.
If you’re not sure about investing internationally, you can invest in international funds. These are registered funds that invest in foreign companies.
You can also invest in international stocks registered in other markets. There are foreign companies that get traded in markets other than their home countries.
Forex is one of the most popular international investments. You can trade currencies based on economic conditions.
One of the drawbacks of international investing is that it costs more. Take the currency conversions and broker’s fees before deciding to invest in foreign markets.
Finding a Broker to Invest in International Stocks
It’s critical to find a reputable broker for international investing. One of the top things to know is the markets they trade in.
If you’re interested in investing in Forex, make sure your broker is able to handle those trades. For investors who want to invest in South Korean stocks, click here for an example of a brokerage.
Be sure to find a broker that’s registered, has a demo account to start with and offers trades for reasonable fees.
Get Started With International Investment Opportunities
As an investor, it’s easy to stick with the markets that you know. It seems safer to do that, but you expose yourself to significant risks if you only have one investment vehicle.
International investing is a lot easier than you think. You’re not limited to stocks, either. As long as you find a reputable broker to work with, you’ll be able to invest in international stocks, government debt, and international real estate.
If you enjoyed learning about international investing, you’ll enjoy the other articles on this site. Check them out today!
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