How to pick offshore investments for long-term wealth creation
Here’s why you need to diversify
Living in South Africa, or even as a South African living abroad, it’s easy to be sucked into the news about our country. At times it’s so all-consuming that one can forget there is a whole world out there. This is clearly demonstrated by people’s online search behaviour, as shown in the graph below. Note how the interest in Finance Minister Malusi Gigaba’s appointment and the country’s junk status, which were both so huge in our lives, was tiny compared with the search interest in US healthcare, even dwarfed by the interest in reality TV star Kim Kardashian! If you take a step back as an investor and look at South Africa globally, it represents a tiny fraction of the investable opportunities out there. The country accounts for only 6% of emerging markets and less than 1% of world markets. Add to that the volatile currency and uncertain political climate, and the need for diversification is clear. Investing offshore should be a core part of your long-term investing plan Bearing thi...
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