What is the most attractive country to invest?

Despite the agreement reached to increase the debt limit U.S. laempresa rating agency Standard and Poors fell for the first time in lahistoria risk rating to the debt of this country. The volatility in global financial markets in recent weeks has been related to some extent with the news.

Moreover, several European countries face major debt problems alos U.S. and the survival of the euro and the European Union are in doubt.

There are European countries whose debt level exceeds the United States. Some of those European countries have seen the credit rating of its debt reduced to junk bond level.

In Asia, countries like China and India continue to have levels of growth and prosperity unsurpassed data according to World Bank projections. Many believe that China will overtake the U.S. as the largest economy in the next ten years.

However, it must be remembered that twenty years ago many thought the same about Japan until that country was beaten by a financial crisis which has halted the growth of its economy since then.

The lesson is that even the most stable economies unacrisis historically vulnerable to financial and extraordinary levels of growth are not sustainable indefinitely.

Today, investors should consider a global diversification strategy yadoptar measures to help mitigate volatility in financial markets, interest rates and currencies.

A global diversification strategy is to invest in stocks and bonds of companies worldwide looking for attractive opportunities according to the quality of companies and economic growth of the country where they are located. This strategy also considers maintaining per-country limits to avoid inappropriate concentrations.

Though a company in a given country has exceptional performance can verafectada by a financial crisis or devaluation in the local market. To mitigate these risks exist protection strategies that can be taken in advance using instruments such as futures and options contracts that serve as a hedge against the risks described above.

These strategies are implemented by specialized risk management companies and have been used successfully for pension funds and insurance compañíasde for over a decade.

Products have recently been introduced to these strategies for individual clients, which allow opportunities to invest in presentandurante periods of high volatility such as we are experiencing without surprises or unnecessary losses.

Regarding the initial question, there is a country that is categorically better to invest your money and nobody knows what will happen in the future of every country. It is advisable to avoid concentrating all your investments in one country and protect your investment against market volatility.