Do You Care for the Global Threats while Investing?

With the fast pace of globalization, it has now become very important to consider the factors which are not only confined to your local area. This is true for your investment too.

The faith of the stocks where you put lots of hope is not only determined by the local factors. There are so many global competitors lined in the same field that the performance of the stocks can easily be turned upside down by any of its competitors.  Well, the reverse case is also applicable here.

Competitors and other relative factors from all over the world are growing so fast that whenever one of them is being defended another one comes into the picture in a flash. And these problems are not the same for every person. However, there are some common global factors which can affect the future of almost any investor. Here are they:

1) The global economy is getting more & more polarized with time. The high net worth countries are growing at a fast pace in all dynamics, and the poor countries are getting poorer day by day. The mid level countries are shifting to either one of these two poles of the economy.

2) There is continually growing a huge information gap in various parts of the world. Some parts are very well connected through internet and other media, whereas many other are still waiting for the traditional mode of communication. If you are running fast with the information, then you have the chance to beat the odd, otherwise you are sure to stay far behind of the others.

3) Free trade policies of a country also affect the investor's returns by a great margin. If there are some great changes in the free trade policies, suppose the Government is pulling more restrictions to free trade, then it will definitely hamper the stock market.

4) Another overwhelming global factor that plays a huge role in deciding the faith of an investor is the nuclear race. This threat is continuously growing day by day and with more countries taking part in this race, it seems to go out of hand some day. There are many pacts to keep this issue under control, but even a slightest change in this affects the global financial scenario.

5) There is one more global threat which has a very high influence on the global stock markets. It is none other than the regional disturbances. Its affects are so devastating that, it can ruin not only a single, but it can and it has destroyed many countries till date.

6) Inter relationship among the various countries also make some changes in your investment. Better tie up among the countries is always a good sign and definitely brings some good hope towards future economic development.

These are some of the very common factors that can bring both side of the result to your investment, i.e. success and failure. It is a duty of every individual investor to keep an eye on the shifting global situations.