Grüner Fisher: “think Global!”

MIL OSI Translation. Region: Germany / Germany –

Source: Boerse Frankfurt28. September 2018. FRANKFURT (Green Fisher). In principle, investors tend to focus on their home market. German investors are increasingly looking to the DAX, MDAX and TecDAX, Swiss value the SMI, for Austrians the ATX is their most important stock market barometer. You "know" and do not have to deal with foreign currency risk in the first place. As a result, the company's own portfolio is often given priorities that are not reflected in the global distribution of the capital markets at all. The principle of global diversification is becoming increasingly popular with investors. If the focus is on the domestic market in its own portfolio and if it is affected by regional problems, then global diversification is very popular. It is recognized that performance outside of your own portfolio is higher and global opportunities should be exploited. Conversely, if the home market is better than the rest of the world, global diversification is quickly called into question. Why invest worldwide, when the good is so close? Why take foreign currency risks at all? Many investors are experiencing this changing sea of ​​emotions over and over again. The benefits of global diversification are not reflected in short or long term performance. Anything is possible in the short term: the DAX can always fly high and leave the rest of the world behind. Likewise, German equities may be hit by a correction that virtually disappears in the global picture – after all, Germany only accounts for four percent of the world's market capitalization. In the medium term, regional bear markets can emerge, yet they will not bring down the global bull market. 2011 will be a bad year for European investors, while Americans will be able to proclaim the longest bull market of all history from 2009 to 2018. In the long run, the average performance of individual developed countries usually fits in with the global picture, even if the outperformance of the overall market continues over a longer period of time – as can be seen in the bull market for US equities. A superior principleGlobal diversification is a strategic principle. Many investors want long-term equity market-like returns, but they do not agree with the path to their destination. High volatility, sharp corrections, tough sideways – in an intact bull market, investors will have to pass countless stress tests to ultimately name the handsome total return. So the crucial question is: how can the rocky road to a good overall result be made as "bearable" as possible? With global diversification! Compared to regional portfolios, the variability can be reduced, global opportunities are exploited, and a well-balanced split processes adverse performance and currency effects of individual components into a robust overall construct. ConclusionAs if the global equity markets were not volatile enough: Many investors are also provoking undesirable effects for their own portfolio due to the strong focus on their home markets. By contrast, global diversification creates the best prerequisites for mastering the difficult path to long-term investment goals. The mature bull market is typically volatile, presenting investors with major emotional challenges. So be prepared and think global! By Thomas Grüner29. September 2018  © Green Fisher About the AuthorThomas Grüner is Founder and Vice Chairman of Asset Management Green Fisher Investments. His partner, Ken Fisher, has been a "Forbes" columnist for more than 30 years and warned in March 2000 in time for the bursting of the New Economy bubble. Ken Fisher ranks among the 400 richest Americans and ranks 211 on the current "Forbes" rankings. Fisher Investments currently manages more than $ 65 billion. This article reflects the author's opinion, not the the editors of Its content is the sole responsibility of the author.


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