It’s important to remember that different geographic areas offer different advantages for investors, and indeed have different risks.
Being a successful investor is dependent on a combination of factors - there’s no single winning formula. Yet experts are unanimous that an essential element of any portfolio is diversification.
At its most basic, having a diversified portfolio is simply the investment version of the phrase ‘don’t put all of your eggs in one basket’. But true diversification is more than just buying shares in lots of different companies. A properly diversified portfolio usually includes different types of assets, as well as investments in different types of businesses from different areas of the globe.