Two Reasons You Should Invest Globally
Adding international investments to your portfolio offers two potential benefits: diversification and growth.
Because U.S. and international markets sometimes experience ups and downs at different times, combining U.S. investments with international investments may help reduce your portfolio’s volatility and improve its potential returns. For example, when U.S. stocks are down, stocks in another part of the world may be up, helping to lessen the impact of declining U.S. share prices. Although diversification may help reduce a portfolio’s volatility, it does not ensure a profit or protect against loss in declining markets.
Investing internationally offers you the chance to participate in markets that may be growing faster than the U.S. market. Of course, you probably already have some exposure to international markets if you invest in U.S. companies that do business outside of the U.S. That exposure can be supplemented by investing in foreign stocks and international mutual funds and ETFs.
International markets offer investment opportunities to U.S. investors who venture beyond our borders. Whether international investments are right for you will depend on your financial objectives, the length of time before you will need the money, and your tolerance for risk. While all investing involves risk, investing outside your home country involves additional risk.
With offices in Williston and Rutland Vermont, Copper Leaf Financial advisers can help you determine the role that international investments should play in your portfolio and recommend investments that are appropriate for you, based on your individual roadmap to retirement. Please call 802.878.2731 for more information.