There is always a market that has done better than your own overall stock investing returns. It is one of the pitfalls of investing to look back and tell yourself “if I just had only invested in that market”.
As a smart index investor with sufficient funds to invest, you do not bet on just one market. You pick a number of different markets to spread your risks. You could for example invest in different international markets (if that is for you, read here more about diversifying internationally).
Get the benefits from a global geographical diversified portfolio of index funds
Once your stock investing portfolio is large enough, you can easily use index funds to diversify your investments over different regions in the world. Such a diversification has a few advantages that we will list below.
Here are four reasons for diversifying your stock investments geographically around the world:
Stock market timing helps to make balanced buy-sell decisions to create great investing returns.
Stock market timing helps me now already for over 8 years to capitalize on the long-term trends that you can see in stock market indices. This market timing system I developed in 2003 has enabled me to benefit from the bull market between 2004 and 2007, to avoid the financial crisis of 2008 and to ride again the trend up between 2009 and today.
The biggest loss I ever made on a single investment was the investment in the stock of a company that I knew best. This is a great lesson for beginners who want to start investing. It was in 2000 and I bought shares in the company that I was working for. I know that company inside out. I know its industry. I know the competitors. It was and is the dominant global market leader in its market. And still I lost more than 60% of my investments in that company.
Earlier this week we have published our new Stock Trend Investing eBook. This eBook is at this moment freely available for those who sign up for our newsletter, which is actually free as well.
The title of the eBook is “Superior Stock Investing Results and Peace of Mind in One Hour per Month”. It is an extensive introduction to and background for the Stock Trend Investing website.
It tells the story how and why I came to Stock Trend Investing system; to explain the journey of a decade that I have taken to get where we are.
This website is an Investing Guide for all those people who want to get superior returns on their stock market investments, while keeping peace of mind and without spending more than one hour per month on it.
Step 1 in this Investing Guide is to sign up for our free newsletter.
That is done in a minute.
Step 2 in this Investing Guide is to go to our trend investing blog and read a number of articles that sound interesting to you.
This can give you a first good feeling if this website and the Stock Trend Investing strategy is something for you.
Step 3 in this Investing Guide is for when you want to start seriously applying the Stock Trend Investing approach. In that case we recommend you try our risk-free Gold Membership.