The Long-Term Growth In Global Trade Reduces Investing Risks

As an investor, you are always trying to minimize the risks associated with your investments. It is an ongoing challenge that you must constantly wrestle with. The question investors are asking themselves is whether or not investment offerings in global markets offer less exposure to risk than investments currently offered in North American markets. The truth be told, ALL investments have some sort of inherent risk involved. In fact, the very definition of the word Investment implies that their are risks ahead:

A thing that is worth buying because it MAY be profitable or useful in the future
- Source: Google Definitions

The word "may" found in the definition above suggests that there is always a chance an investment opportunity will not pay out profitably. I cannot begin to express how important it is for the individual investor to accept this fact, manage the uncertain aspects of their portfolio, and keep investment risks to a minimum. Obviously then, the goal is to continually reduce investing risks without affecting your portfolio's overall ability to profit from your immediate holdings. The challenge is which investment road to take.

In order to reduce your investment risks, you will need to look for guarantees, or markets that almost certain to rise in the future. One of those options is to invest in emerging markets and the global trade that feeds them. Look around the world, international trade is flourishing and continuing to grow at a very decent rate. Be that what it may, the question still remains. Will investing in global trade reduce investing risks? In my mind it depends a great deal on what you invest in. However, as global trade numbers continue to grow, and are expected to continue to increase, you simply need to find an investment that grows on pace with the world's economic prosperity. In doing this, you will reduce your investment risk, by choosing an investment that promises long-term growth and profitability.

If you are looking for my recommendation, I suggest you find a vehicle that is directly involved in building and maintaining economic growth in developed and emerging countries around the world. Making an investment in the shipping industry for example, is a great means of getting involved in the global growth while at the same time, minimizing your exposure to risk.