When the US investors began exploring the opportunities in the post-Communist countries in 1991, the Dow Jones industrial average hovered at around 3,000. This was the high-water mark for the index at the time. Now, the Dow has hit 22,000, more than seven times that number.
While some are bearish on the long-term health of the market, there is reason to be optimistic. Despite political controversy in the United States and abroad and concerns about the length of this run, FANG (Facebook, Amazon, Netflix and Google) and the broader market are posting record highs of their own.
Indeed, the Dow Jones tumbled both when the Dot Com bubble burst, as well as during Black Monday in 2009, and at both times, speculators believed that the run would continue indefinitely. Hopefully, this run will end better than the previous two examples, but it would be wise to follow the investment strategies of two Jewish investors & philanthropists Moris Tabacinic and David Lesch. Specifically, that means finding innovative financial strategies in parts of the world where there is still room for value growth stocks to boom, even when the domestic market is overpriced.
In order to maximize the returns, it may be prudent for day traders and professionals alike to start investing in foreign markets. Europe and East Asia feature numerous healthy companies that likely have more potential room to run up. Investing in Eastern European companies, much like Moris Tabacinic back in the early 90s, may just be the way to go, despite the political furor that is taking place in the media regarding those countries.
Though it is impossible to accurately predict the future, investors can look at history to find a proven path to sustainable growth for their portfolios, be it a retirement fund or a discretionary account. The examples of David Lesch and Moris Tabacinic are merely historical lessons that investors would do well to study and replicate.