Written by R. A. Stewart
“Invest in several places because you do not know when misfortune will strike”-Ecclesiastes 11:2
Is advice given by Solomon and it is advice worth heeding because you do not know when a market downturn is going to happen. It could be the result of political turmoil, a natural disaster, or another pandemic.
When I talk about investing in several places, it does not only mean investing in several different companies, but rather investing offshore as well.
It is called diversification.
There are two main reasons why investing offshore makes sense.
- You have access to industries not available in your own country.
- You are able to buy into companies that lead the way in AI
There are global brands that you have access to when investing globally, some of these have given excellent returns over a long period of time.
With such a larger pool full of world-leading industries and companies to invest in, you will have the opportunity for better returns.
On the other hand, New Zealand is a small country with an economy vulnerable to unforeseen events such as foot and mouth disease or natural disasters.
If foot and mouth took hold in New Zealand -it would likely result in the dollar plunging and more expensive imports. Tourism would most likely be affected, and GDP would fall to unprecedented levels.
There are other things which can affect our economy such as a trade war or a serious climatic event.
It is a good idea to invest globally to mitigate the risk of exposure to a market meltdown in your country.
Check your retirement funds to see what percentage of it is invested globally. Even if most of your retirement fund is invested locally, you can still get involved in overseas markets on a shoestring.
One online platform for doing this is Hatch.
Hatch is a New Zealand based investment platform. If you are from a country outside of New Zealand then it will pay to check out those which are available in your own country.
Before you start investing with Hatch or any other investing platform, it is important to know what kind of investments they have available and how they align for your investment goals and risk profile.
Invest for the long-term and avoid making short-term decisions based on emotion. Focus on your investment goals and above all be patient. Don’t get fixated on your balance. If you have invested according to your risk profile then your balance should not be a concern.
Smart investors mitigate the risk to their capital by investing in a diverse range of assets and industries. Investing in Hatch offers a gateway to global markets and a diverse range of investment opportunities. By understanding the platform, conducting proper research, diversifying your portfolio, and staying informed, you can potentially build a strong investment portfolio suited to your financial goals. Remember, investing involves risk, so it’s crucial to invest responsibly and stay informed about market dynamics and your investment choices.
Join Hatch here:
ABOUT THIS ARTICLE
The contents of this article are of the opinion of the writer and may not be applicable to your personal circumstances, therefore discretion is advised. You may use this article as content for your blog/website or ebook. Read my other articles on www.robertastewart.com
