Any investor must learn the importance of international diversification and there are many reasons to invest outside of your own country. From having better ways to make money during periods of opportunity, to gaining a greater ability to diversify and protect yourself during times of regional and global crisis, investors must go global in the 21st century.
Good investors thrive when they have options, and seeking out different markets abroad give a wide range of possibilities. Different currencies, different stocks, and even the possibility to take advantage of time zones by trading in markets around the world at any time of day that you wish have the potential to make you very wealthy.
No matter where you live, chances are that somewhere in the world there is an investment that is better than anything within your own borders. Perhaps a large gold deposit was just found in Cambodia, or Taiwanese researchers are on the verge of finding a breakthrough cure for a major disease? With the proper planning and foreign accounts in place, you can increase your versatility and react to money-making investments before the rest of the world does, making you richer in the process. Preparation is key for putting yourself in a position to react quickly to global trends.
International diversification not only can also help you gain wealth, but can also preserve it. Having assets in different countries will protect you from a potential crisis in your own. No nation is immune to disaster, but political, economic, or monetary crisis in one country will have a much lesser effect on another.
During a crisis, many different things can happen with short notice. The stock market may crash, or a country’s currency may become worthless. As governments become desperate, some have even tried to confiscate the private assets of their citizens. Preparing for the worst can give you peace of mind and possibly protect you later down the road. Even if nothing bad happens, you will not be any worse for having assets in a stable jurisdiction.
Better yet: diversify even further by having assets in several countries throughout the world. Storing gold in Austria, banking in Singapore, storing precious medals in Hong Kong and living wherever you like will make you immune to the whims of any single country or government.
In short, safeguarding your portfolio by spreading your assets throughout the world is needed for any risk-averse and intelligent investor.