Own the World: How Smart Investors Create Global Portfolios - Hardcover

Anderson, Aaron

Hardcover

ISBN 10: 0470285389 ISBN 13: 9780470285381

Publisher: Wiley, 2009

Synopsis

Global investing isn't new. In fact, investors have been looking to overseas markets for hundreds of years, and with good reason. A global portfolio can bestow innumerable rewards on the savvy investor, yet many US investors remain woefully under-exposed to foreign equities. Despite the fact that US equity markets make up less than half of world markets, only a small portion of our investment dollars are allocated overseas. Even the most sophisticated investors have been deterred by misconceptions about the risks associated with owning foreign stocks or a lack of information about foreign markets. But the notion investment options are limited by borders is antiquated and downright detrimental to successful investing.

Once considered the playground of only the ultra-rich or institutional investors, global investing is fast becoming not only possible, but a necessity, for every investor. As part of Fisher Investments Press, Own the World introduces readers to the vast advantages of seeking investment opportunities all over the planet. Own the World provides investors with tools to build a global portfolio and points out potential hurdles to avoid. It also educates readers on the nuts and bolts of foreign markets, how to easily understand them, and vehicles for investing there. By detailing the vast and currently underappreciated benefits of global investing and the distinct advantages of a global approach, as well as common pitfalls to avoid, Own the World can help readers to tread more confidently into global markets as they look to optimize their investment results.

About this title

About the Author

AARON ANDERSON is a Capital Markets Research Analyst at Fisher Investments where he focuses on global macroeconomic and market trends. He holds BS degrees in geophysics from the University of California, Santa Barbara and applied economics from the University of San Francisco. Anderson writes a regular column for MarketMinder.com titled “The Global View”, and instructs at investing seminars nationally. He and his wife Kim reside in Danville, California. They enjoy traveling (and investing) all over the world.

From the Back Cover

Despite the fact that foreign stocks make up a larger portion of world equity markets than U.S. stocks, only a small portion of American investors’ dollars are allocated overseas. Many of the world’s biggest and fastest-growing companies are located outside the United States, so a global portfolio can bestow rich rewards on the savvy investor. But increased return opportunities aren’t the only benefit. Greater opportunities for risk management through diversification are another important advantage of a global investment portfolio. Yet even the most sophisticated investors have been deterred by misconceptions about the risks associated with foreign stocks and the seeming lack of information about foreign markets.

Own the World will educate you on the importance of going global, the investment vehicles providing access to global markets, and potential pitfalls to watch out for when expanding portfolios overseas.

Author Aaron Anderson, an analyst at Fisher Investments, describes the benefits of global investing in straightforward terms. He explains that many of the world’s most successful firms are located outside the United States, including many of the companies Americans rely on most. He details how investing globally can increase diversification and reduce portfolio risk because different conditions in different countries can cause domestic and foreign stocks to be imperfectly correlated. The author provides an overview of global stock markets and describes how to efficiently employ a top-down approach to building a global portfolio. He outlines some of the factors impacting stock prices around the world as well as some of the more challenging aspects of global investing, such as political risks, different accounting standards, and others. He further explains that, in many cases, the perceived risk is greater than the actual risk.

While global investing can’t insulate investors from all the ups and downs inherent in stocks no matter where they’re from, it can unleash myriad opportunities to take advantage of the growth potential and risk-reducing benefits of stocks around the world. This book can show you how to take full advantage of these tremendous opportunities.

From the Inside Flap

Despite the fact that foreign stocks make up a larger portion of world equity markets than U.S. stocks, only a small portion of American investors' dollars are allocated overseas. Many of the world's biggest and fastest-growing companies are located outside the United States, so a global portfolio can bestow rich rewards on the savvy investor. But increased return opportunities aren't the only benefit. Greater opportunities for risk management through diversification are another important advantage of a global investment portfolio. Yet even the most sophisticated investors have been deterred by misconceptions about the risks associated with foreign stocks and the seeming lack of information about foreign markets.

Own the World will educate you on the importance of going global, the investment vehicles providing access to global markets, and potential pitfalls to watch out for when expanding portfolios overseas.

Author Aaron Anderson, an analyst at Fisher Investments, describes the benefits of global investing in straightforward terms. He explains that many of the world's most successful firms are located outside the United States, including many of the companies Americans rely on most. He details how investing globally can increase diversification and reduce portfolio risk because different conditions in different countries can cause domestic and foreign stocks to be imperfectly correlated. The author provides an overview of global stock markets and describes how to efficiently employ a top-down approach to building a global portfolio. He outlines some of the factors impacting stock prices around the world as well as some of the more challenging aspects of global investing, such as political risks, different accounting standards, and others. He further explains that, in many cases, the perceived risk is greater than the actual risk.

While global investing can't insulate investors from all the ups and downs inherent in stocks no matter where they're from, it can unleash myriad opportunities to take advantage of the growth potential and risk-reducing benefits of stocks around the world. This book can show you how to take full advantage of these tremendous opportunities.

Edition details

• Publisher: Wiley
• Publication date: 2009
• Language: English
• ISBN 10: 0470285389
• ISBN 13: 9780470285381
• Binding: Hardcover
• Edition number: 1
• Number of pages: 224