Connect with us
Finance Digest is a leading online platform for finance and business news, providing insights on banking, finance, technology, investing,trading, insurance, fintech, and more. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

FINANCE

By Nigel Green, founder and CEO of deVere Group

The Brexit vote outcome continues to send shockwaves throughout the world.

Nigel Green

The markets had, by and large, expected the Remain campaign to win.  As such, unsurprisingly, the result had a quick and dramatic international impact.  The FTSE 100 fell more than 8 per cent immediately after the ‘Leave’ victory; the Dow Jones suffered the worst two days for U.S. stocks since August last year; the Johannesburg Stock Exchange fell nearly 5 per cent; and the Hang Seng Index fell by some 1,000 points.

In addition, the euro slid against the US dollar and the pound slumped to its lowest level in 30 years.

However, days after the Brexit result was announced, and the dust was settling, markets began to rally.  For instance, the FTSE, the UK’s blue chip index, regained all ground lost since the shock outcome, and sterling strengthened against the dollar and euro.

Of course all this seesawing in the markets impacts your wealth.  So what to do?

One of the key themes now that all investors must do is this: Think global.

There are two facets to this.

First, investors should think global when it comes to their portfolio.  Many investors should be considering a rebalance anyway, regardless of Brexit.  Investing across geographical regions is one of the fundamentals of a well-diversified portfolio – and those with a well-diversified portfolio are best-placed to mitigate risk in times of market turbulence and best-placed to take advantage of the opportunities.

It is a myth that investing internationally is riskier.  Indeed, the greater diversification that is secured by going global, the greater the reduction of overall portfolio risk.

It is also a misconception that international investment options are exclusively the domain of sophisticated investors. This is not true. There are many well-managed retail funds that offer global stock market exposure, using a wide variety of approaches.

And second, investors need to think global in terms of other geopolitical risks.  A possible Brexit has been driving global financial markets for a couple of months – and it continues to do so.  But keep an eye on other important geopolitical factors that will influence markets and therefore impact your finances. These include China’s economic growth, the possibility of Brexit contagion as other countries seek to exit the EU, the U.S. election, the failure of negative interest rates in Japan and the Eurozone to stimulate sustainable recovery, and the Fed’s nervousness over the U.S. economy.

In these times of increased global volatility, a good fund manager will prove to be invaluable to help capitalise on the enormous opportunities that will be coming along and to sidestep the risks.

Thinking global is imperative to create, maximise and safeguard your wealth.

Continue Reading

Why pay for news and opinions when you can get them for free?

       Subscribe for free now!


By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Posts