Viewpoint: It's time for investors to 'go global'

Dubai - See-sawing markets conditions will, of course, impact your wealth

The shock victory for the Leave campaign in the Brexit vote is still reverberating across the globe.
For the most part, markets had been counting on the Remain campaign to win. This is why, naturally, the Leave victory has had a rapid, intense worldwide impact.
Looking at the figures, the UK's FTSE 100 fell over eight per cent straight after the Leave win; the Dow Jones suffered the worst two days since the August 2015 "meltdown"; the Johannesburg Stock Exchange fell by almost five per cent; and the Hang Seng Index fell dropped by some 1,000 points. Coupled with this, the euro fell against the dollar, and the pound plunged to its lowest level since 1985, amongst other shifts in the currency markets.
That said, a few days after the Brexit result was announced, global markets started to rally. As an example, the FTSE, the UK's blue-chip index, recovered all ground lost since the vote, and sterling became stronger against the dollar and euro.
Such see-sawing throughout the markets will, of course, impact your wealth. So how can investors use this current situation to their advantage? One key consideration is to go global.
 
'Go global'
Irrespective of the Brexit vote, it is always advisable for investors to think global in regards to their wealth portfolio.
In the run-up to the referendum, savvy investors will have been "Brexit-proofing" their investments. But we've seen a high degree of uncertainty throughout the markets generated by the intense campaigning in recent months by the Remain and Leave camps.
Three of the essential features of a sufficiently-diversified portfolio are investing across geographical regions, industrial sector and asset class. As such, investors who maintain a well-diversified portfolio will be in a prime position to make the most of the inevitable opportunities that present themselves during such unpredictability and market turbulence, whilst simultaneously mitigating risk.
The claim that international investing presents a higher risk is incorrect. Quite the contrary; the more diversified the investment portfolio, encompassing a global emphasis, the greater the reduction of risk. After all, failing to properly diversify a portfolio is widely regarded as one of the most common investment mistakes - and all financial experts would agree that diversification in these times of post-Brexit rising market volatility is crucial.
In addition, it is also a fallacy that only sophisticated investors should consider the option of investing globally. There are numerous perfectly well-managed retail funds that offer investors international stock market exposure, using several different approaches.
Furthermore, investors must think global when it comes to considering other geopolitical risks. Therefore, other current global factors such as economic growth in China; the threat of a Brexit contagion-effect as other member states seek to exit the European Union; the forthcoming US election in November; the Federal Reserve's economy-fuelled anxiety; and negative interest rates failing in their quest to encourage sustainable recovery in the Eurozone and Japan, must be considered.
The ideal way to manage this post-Brexit market volatility is by seeking professional advice from an independent financial adviser.
The expertise they can provide will be invaluable to investors. They will help them to focus on their individual risk tolerance, timeframes, and pinpoint the most appropriate investment and financial solutions. And they will, crucially, be able to help them sidestep the risk whilst simultaneously taking advantage of the opportunities that volatility always presents.
As the Brexit aftermath continues to impact global markets, thinking global should be a top priority for investors. Indeed, many would reasonably argue it is crucial in order to generate, maximise and safeguard wealth.
The writer is founder and chief executive of deVere Group. Views expressed are his own and do not reflect the newspaper's policy.