Property investment overseas
The opportunity to invest overseas opens up an enormous extra market in which the investor can seek out those individual investments considered likely to increase his return or reduce risk. But overseas markets do not just offer a wider choice of investments of the same kind and characteristics as those in the UK, they offer more positive advantages. We have already noted one justification for investment abroad, namely the ability to negate the risk of currency movements by ‘matching’ liabilities overseas with assets in the same country. However, both stock and property markets overseas also provide the opportunity to diversify a portfolio into investments which are likely to be uncorrelated with those in the UK, thereby enabling the investor to reduce his portfolio’s risk.
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