Sunday, May 27, 2012

A Global Perspective is the Key to Unlock Stronger Investment Returns

Many investors regardless of where they live tend to look at investing from a domestic perspective, as they usually focus their investment dollars on companies in their own countries. They are comfortable with these companies partly because they are the ones covered most often in the various media sources they follow. This country specific perspective can cause investors to overlook excellent investment opportunities in other countries.

For many years some of the best investment returns came from the developed economies of the world. One of the leading developed economies is America, during the past 100 plus years, the growth of this economy has been very powerful.

In the future America will continue to be a global economic leader but some argue due to recent economic challenges that the country is losing its leadership position. Even though the American economy is struggling through a tough period – due to the strength and resilience of corporate America and the people of the country – it will likely come out stronger.

Some market pundits argue that the American economy and corporate America is doomed to a long period of tough times. We don’t agree with these dire predictions and think it is a bad bet to take this stance over the long term.

The American economy is a mature economy and on average, investors that invested in corporate America when it was less mature and rode it while it matured did very well.

Emerging economies including China, India and others are providing opportunities to get in early as they grow toward mature economies. As they grow one can invest in their early development and this is similar to the opportunities available years ago for investors in the development of the American economy. Future economic growth from emerging economies will be more powerful because they have much larger populations than the developed economies.

There are great opportunities for investors in emerging economies and it is important for investors to look outside their own borders for investment opportunities. For no other reason than looking at things from a global perspective will give one insight, into their own domestic companies that do business internationally.

Without a doubt the global economy is dynamic and there are opportunities for investors all over the world. Where each country fits in this global economy is also crucial to understand, especially when considering investments. In the future emerging economies will play an increasingly important role in the global economy, and as they mature will undoubtedly have companies with exceptional growth.

Whether or not an investor looks for opportunities throughout the world, a better understanding of the global economy should help improve returns. When it comes to investing – the world is full of opportunities and looking beyond your own borders can lead to outstanding returns.

Allan Barry Laboucan is a writer, researcher, public speaker, consultant, educator, and the founder of the Allan Barry Reports http://www.allanbarryreports.com which focus on commodities and resource stocks. He started his career almost 20 years ago. As a consultant to publicly traded companies, he worked with them to more effectively communicate their stories to a diverse audience of investors. This led to branching out into writing his reports since 2005. The focus of the reports has always been on fundamental research to find undervalued companies and refining technical information into a common sense report. Mr. Laboucan has national television exposure on BNN-Business News Network and has been a guest speaker at some of the largest investor conferences in the world. Visit http://www.allanbarryreports.com to find coverage of commodities, resource stocks, economics and more.

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