Because of the United Kingdom’s unexpected vote to exit the European Union, the financial markets reacted emotionally. As a result, stock prices dropped precipitously. Financial commentators were questioning the effects of this major turn of events on investors’ portfolios. Leaving investors to wonder “Is the sky falling?” or “What should I do now?” My perspective is to take advantage of these dips, caused by volatility, and seek out investment opportunities. Investing globally can be uncomfortable.
Over the last few years as you’ve allocated your investment assets, you may have focused your attention on creating a portfolio around owning securities in US companies. This felt safe and familiar. But is that truly a diversified portfolio? True diversification encompasses investing in different asset types, industries, company sizes and regions of the world. And today more than ever, we are globally interconnected. That’s why I wanted to share insights on the benefits of participating in international markets. In this interview with Renee Baker, Senior Manager at Aberdeen Asset Management, she shares her perspective on opening your world to globalization.