global diversification

Global diversification is an investment strategy that spreads your money across various countries and regions instead of focusing only on your home country. This approach aims to reduce risk by avoiding over-reliance on a single economy’s performance, which can be affected by local factors. By holding assets in different parts of the world, your investments can better withstand regional downturns, and you may also benefit from growth opportunities in emerging markets. Overall, global diversification helps create a more balanced and resilient investment portfolio, potentially enhancing long-term returns while managing risk.