Diversification

Holding assets in a variety of investments can protect you from a decline in any one particular market. Investing in foreign emerging markets provides a diversity of holdings. If you have substantial investments in numerous countries and the economy of one country collapses, you take a financial hit but will not be ruined because your other investments are unaffected. Wide diversification decreases the likelihood that you will become fantastically wealthy on a fluke market rise, but it also protects you from catastrophic loss.

Long-Term Gain

The best investment strategy is to hold assets for the long term and benefit from their growth over time, according to CNN Money. Those who weather the inevitable ups and downs of a market, rather than bailing out at the first sign of trouble, have historically seen an overall increase in their holdings. Emerging markets offer opportunities for investing in assets before their prices become inflated. Many assets do not show substantial growth for years, but when they do, they will be very profitable for investors who got onboard before prices increased.

References

Resources

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