Some investors have trouble selecting which stock markets to invest in. There is no one size fits in terms of shoe size, and food in life and the same applies to stock markets. They all have certain advantages and disadvantages to consider.
So what exactly does the best stock portfolio consist of? What stocks does it contain and from which markets?
Read on to find out!
When selecting stocks it is vital to be able to access data that is up-to-date and easy to find. Only the most used and relevant markets are going to have this vital feature.
When I select my stocks I want to be able to study the charts, and find out who is sitting on the board and what the company does. These are the three most important things for me when selecting a stock.
To each their own, but if you have this in common with me you are going to want to buy stocks from the following five markets IMO:
A table of the five most relevant markets made by Marc Rundquist with canva.com
Bill Browder, a British financier, decided to purchase stocks in the Russian stock market right after the fall of the Soviet Union. In his book, Red Notice talks about the process of buying shares in companies like Gazprom, Rosneft, and Sberbank. As a result, he made a fortune and started a successful fund called Hermitage Capital.
On dmagazine.com you can read that Bill Browder created a hedge fund called Hermitage Capital that was worth 4.5 billion dollars at his peak. In his book Red Notice. You can read about the strategies he used and how he utilized opportunities that arose.
If you consider yourself to be cut from the same cloth as Bill Browder you should explore these unknown stock markets, because they don’t require huge amounts of capital usually and there is not so much competition.
However, there are several downsides. One is that you cannot purchase these shares online via a stockbroker and therefore you will need to either have connections in these countries or establish some connections. Another downside is that the competition might be funded by someone with a way bigger budget than you and they may blow you out of the water.
Setting goals is extremely important when purchasing stocks and different markets are good for different goals.
If you are looking to finance your retirement with a 401k or a Roth Ira you should stick with two markets: the Nasdaq and the NYSE. This is because you want to minimize as many risks as you can, because of the guidelines that apply to both retirement financing plans.
If you just want to make as much money as possible or finance a big purchase of some sort, a house, for example. It is probably best to diversify your portfolio with as many stocks as possible without exceeding your budget.
Diversification minimizes the risk of your investment while giving you a greater chance at bigger gains. The markets to select when doing this sort of thing are not set in stone and you can select pretty much every stock market.
Feel free to contact us with any questions regarding this article!