If you do not use the power of your portfolio in international stocks, you can get on a good thing, missed in the next few years.
Past performance is not always indicative of future performance, but there are some subtle indicators now pointing to diversify income and international equity portfolio.
Although there are many parameters to keep the funds in US stocks, there are good reasons to invest overseas is a good choice, in order to maximize future returns. Even many points for international stocks may not support heavy as you might think
Myth # 1: International stock does not perform as well as Wall Street
According to the last few years, the debate winner. However, so far in 2017, international equities in Europe is a healthy margin tperforming those in the United States.
Historically, after the poor is outstanding performance . Since 2008, the US market outperformed the international markets – a good eight years running. Many investors and financial experts believe, it may be reversed soon. Rising interest rates, overvalued and slow growth in combination can reduce the stock of investment income in the United States – by historical standards, the valuation in the United States high-level overseas, especially in Europe, and interest rates at historically low valuations . For the current average P / E ratio of US stocks is about 17-18 times earnings, which is at the high end. Foreign markets, on the other hand, at an average of 12-13 times earnings.
Myth 2: too much volatility
Terrorism in Europe. Venezuela to take over GM facilities. Concerned about North Korea. Uncertainty and Russia.
Have the means to invest in overseas too risky!
But in the international market it does not lie in the world of investment as a whole. When it comes to investment outside the United States, the world is divided into two categories – the developed and emerging markets
Developed markets are larger, more stable markets such as France, Germany, Japan, Britain and Switzerland
Emerging markets are those that are still in development subject to greater volatility, such as Brazil, India, Russia and China.
While investing in emerging markets has become a bigger risk, which is similar to ŧØDecided to invest more aggressively in the United States. There is more volatility and risk, but the rewards could be even higher. Investors may obtain a lower valuation and enjoy the growth, stability and development of the national economy of emerging markets at the same time.
If you are worried about currency fluctuations, these problems can be eliminated by funds, hedge exchange rate risk.
Myth: My investments do well, so I do not need to change it
Why fix what is not broken? Remember, follow the advice on the stock market each Disclaimer: Past performance does not guarantee future performance. Well, just because the strategy is to work now does not mean it will stay like this forever.
For conservative investors, there is ample opportunity to go where the money is held by the cheaper accumulate wealth. Investment funds may go further and return will be greater, not to take more risks than your current portfolio strategy.
United States, including nearly 50% of global stock markets. This makes nearly half the world’s stock markets closed, if you invest in the United States, insist on the table – you may have lost
Finally, there are global funds in half the likelihood that you can put your money in the combination of the US stock market and international stock markets. These global funding provides the best of both worlds – exposed in the US and international markets, developed and emerging
When considering changing your portfolio STrategy, please consult your financial advisor. In Telemus, we take a holistic approach to the accumulation of wealth, and look at the short-term and long-term goals, as well as large-screen action, investors market. Your trusted financial adviser will be able to guide you to the correct international stock portfolio for you in order to maximize growth and harvest, while meeting your overall investment objectives.
