NKARENG MPOBANE: Exploit globalisation to diversify investments and minimise risk
Globalisation and the information age has made the world a much more fluid arena, not just from an investment perspective but also from a social awareness standpoint. The conversations out of the 2018 World Economic Forum in Davos heightened discussions around the emergence of the knowledge economy as well as inclusivity across global economic structures. And with political uncertainty diminishing the certainty of stable returns, the case for geographic diversification has seldom been stronger. One just has to scan the continent for notable political shifts that have dramatically changed the outlook for 2018 and beyond across various African geographies. If one assumes fair pricing of country-specific risks, these risks should be fully reflected in all asset prices, meaning one way to reduce exposure to such risks is to look elsewhere. Investors would invariably diversify their wealth to reduce the risk of their portfolio losing total value. Because good diversifiers generally have ...
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