{"id":29631,"date":"2012-05-14T17:50:57","date_gmt":"2012-05-14T21:50:57","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/2012\/05\/how-to-instantly-diversify-your-portfolio-by-70\/"},"modified":"2012-05-14T17:50:57","modified_gmt":"2012-05-14T21:50:57","slug":"how-to-instantly-diversify-your-portfolio-by-70","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2012\/05\/14\/how-to-instantly-diversify-your-portfolio-by-70\/","title":{"rendered":"How to Instantly Diversify Your Portfolio By 70%"},"content":{"rendered":"<p>Article by <a href=\"http:\/\/www.investmentu.com\/\" target=\"_blank\">Investment U<\/a> <\/p>\n<div><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-29257\" title=\"How to Instantly Diversify Your Portfolio By 70%\" src=\"http:\/\/www.investmentu.com\/wp-content\/uploads\/2012\/05\/diversify-your-portfolio.jpg\" alt=\"How to Instantly Diversify Your Portfolio By 70%\" width=\"220\" height=\"220\" \/><\/p>\n<p>In order to have a truly diversified portfolio, you must include a healthy dose of foreign investments.<\/p>\n<\/div>\n<p>Imagine if throughout your working career you only did what you were supposed to 30% of the time.<\/p>\n<p>Would you have been showered with raises, bonuses and praise? Or do you think you would\u2019ve been left underpaid, unappreciated and unsuccessful?<\/p>\n<p>The likely outcome is the latter. It\u2019s obvious.<\/p>\n<p>Yet many investors don\u2019t realize they\u2019re making a similar mistake when it comes to their financial portfolio.<\/p>\n<p>That is, they\u2019re only doing 30% of the \u201cwork\u201d necessary to get the most out of their investments.<\/p>\n<p>How are they doing this?<\/p>\n<p>By simply ignoring companies that operate outside of the United States. Let me show you what I mean&#8230;<\/p>\n<h2><strong>It\u2019s a Global World&#8230; and It\u2019s Not Going Away<\/strong><\/h2>\n<p>According to <a rel=\"nofollow\" target=\"_blank\" href=\"http:\/\/data.worldbank.org\/indicator\/CM.MKT.LCAP.CD\/countries\/1W-US?display=graph\">The World Bank<\/a>, the U.S. accounts for 30% of the world\u2019s total equity market cap.<\/p>\n<p>Granted, that\u2019s a huge chunk for any one nation.<\/p>\n<p>But it also means 70% of the all the publicly traded opportunities around the world are found outside of America.<\/p>\n<p>And that\u2019s not all&#8230;<\/p>\n<ul>\n<li>The growth rate in emerging markets is about four times faster than that of the United States.<\/li>\n<li>By 2030, 93% of the world\u2019s middle class will reside in emerging nations.<\/li>\n<li>According to Ameriprise Financial, emerging market stocks returned more than 13% a year over the past decade, compared with less than 1% for U.S. stocks.<\/li>\n<\/ul>\n<p>The point is: In order to have a truly diversified portfolio, you <em>must<\/em> include a healthy dose of foreign investments.<\/p>\n<p>At <em>Investment U<\/em>, our <a rel=\"nofollow\" target=\"_blank\" href=\"http:\/\/www.investmentu.com\/investment-u-fundamental-principles-of-investing.html\">Asset Allocation Model<\/a> suggests dedicating 30% of your total portfolio to foreign stocks.<\/p>\n<p>So where can you look for great opportunities to profit?<\/p>\n<p>One place to consider \u2013 that isn\u2019t on everyone\u2019s radar yet \u2013 is one of Latin America\u2019s fastest-growing global markets.<\/p>\n<p>I\u2019m talking about Colombia&#8230;<\/p>\n<h2><strong>The Next \u201cIt\u201d Emerging Market<\/strong><\/h2>\n<p>Believe it or not, after years of drug violence, The World Bank says Colombia is the most secure country in all of Latin America to do business.<\/p>\n<p>In fact, foreign investment has more than quadrupled there since 2002. It even hit a record all-time high in January. And it looks like this is just going to be the very beginning&#8230;<\/p>\n<p>On Thursday, Colombia and China reached an agreement that will bolster its exports of coal and oil to Asia.<\/p>\n<p>If you didn\u2019t know, Colombia is already the third largest exporter of oil to America.<\/p>\n<p>Now that it\u2019s going to start increasing its role in Asia, too, oil companies in Colombia are propped to enjoy a long period of prosperity.<\/p>\n<p>Investors can take advantage of this enormous opportunity by investing in a company like <strong>Ecopetrol S.A.<\/strong> (NYSE: <a rel=\"nofollow\" target=\"_blank\" href=\"http:\/\/www.google.com\/finance?q=EC\">EC<\/a>).<\/p>\n<p>Ecopetrol is Colombia\u2019s largest oil and gas company. With a market cap of $113 billion, it conveniently trades directly on the NYSE. It even has a solid dividend yield of 3.3%.<\/p>\n<p>What\u2019s more, the company is currently experiencing quarterly revenue growth of 25%. It\u2019s operating and profit margins are sitting pretty at 24% and 37% respectively. And its stock price has been on a tear&#8230; up 45% so far this year.<\/p>\n<p>But no matter whether you\u2019re into opportunities in South America, Asia, or anywhere else, just remember to expose your portfolio to emerging markets and foreign investments.<\/p>\n<p>You won\u2019t regret it.<\/p>\n<p>Good Investing,<\/p>\n<p>Mike Kapsch<\/p>\n<div>\n<a rel=\"nofollow\" target=\"_blank\" href=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?a=nzJxDP9ud5Y:8SBrA2LLwps:yIl2AUoC8zA\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?d=yIl2AUoC8zA\" border=\"0\" \/><\/a> <a rel=\"nofollow\" target=\"_blank\" href=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?a=nzJxDP9ud5Y:8SBrA2LLwps:V_sGLiPBpWU\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?i=nzJxDP9ud5Y:8SBrA2LLwps:V_sGLiPBpWU\" border=\"0\" \/><\/a> <a rel=\"nofollow\" target=\"_blank\" href=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?a=nzJxDP9ud5Y:8SBrA2LLwps:qj6IDK7rITs\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?d=qj6IDK7rITs\" border=\"0\" \/><\/a> <a rel=\"nofollow\" target=\"_blank\" href=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?a=nzJxDP9ud5Y:8SBrA2LLwps:gIN9vFwOqvQ\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?i=nzJxDP9ud5Y:8SBrA2LLwps:gIN9vFwOqvQ\" border=\"0\" \/><\/a> <a rel=\"nofollow\" target=\"_blank\" href=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?a=nzJxDP9ud5Y:8SBrA2LLwps:F7zBnMyn0Lo\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?i=nzJxDP9ud5Y:8SBrA2LLwps:F7zBnMyn0Lo\" border=\"0\" \/><\/a>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/InvestmentU\/~4\/nzJxDP9ud5Y\" height=\"1\" width=\"1\" \/><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/SyndicationFeed\/~4\/0KHxGIE_XMo\" height=\"1\" width=\"1\" \/><\/p>\n<p>Article by <a href=\"http:\/\/www.investmentu.com\/\" target=\"_blank\">Investment U<\/a> <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Article by Investment U In order to have a truly diversified portfolio, you must include a healthy dose of foreign investments. Imagine if throughout your working career you only did what you were supposed to 30% of the time. Would you have been showered with raises, bonuses and praise? Or do you think you would\u2019ve &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.investmacro.com\/forex-news\/2012\/05\/14\/how-to-instantly-diversify-your-portfolio-by-70\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;How to Instantly Diversify Your Portfolio By 70%&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-29631","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/29631","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=29631"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/29631\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=29631"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=29631"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=29631"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}