The world is getting smaller – at least when it comes to investing. Cost reductions and technology have made it easier for the ‘average Joe’ to buy stocks from any nation, at any time. Buying shares in a Chinese steel manufacturer is just as easy as adding blue-chip U.S. Steel (X ). In the end, the ability to go global has opened a ton of opportunities for investors and their portfolios.
The problem is, most of us use the opportunities in a short-term or tactical manner. Going global, for many investors, means thinking only about today. It also often means trading the hottest market at the moment or having only a token amount allocated to foreign equities.
But really that’s the wrong attitude.
For investors, going global should be about the long term. There are plenty of portfolio benefits to going global for all the right reasons.