Why Should We Invest Internationally?

May 10, 2016

 

There is a world of opportunity outside the U.S. Almost one-half of all of the world's stocks are outside our country.

 

Lately there has been a lot of focus on this question, as non-US equity investments have underperformed US ones for several years now.  It seems like bad economic news has been erupting from overseas for a while, whether it be a perceived slowdown in China, bankruptcy fears in Greece, terrorism in Europe, or natural disasters in Japan and other places.

 

It's easy to forget the so-called "Lost Decade" from 2000-2009 when Large Cap US stocks lost money and Small International and Emerging Markets stocks gained 8-10% annualized.  Currently, based on many metrics, the US is the most expensive stock market in the world.   This might be a good reason to believe future returns will be higher outside the US.

 

 

Below is a link to a well done video on why we invest internationally produced by Dimensional Fund Advisors.

 

 

 

 

Reproduced below is our annual report on the benefits of diversification.  It shows the "best" stocks to own for one and five-year rolling periods. 

 

 

 

Please reload

Newsletter

Subscribe to our newsletter to stay up to date on investment and wealth management news

Recent Posts
Please reload

Archive
Please reload

Search By Tags
Please reload

You might also enjoy reading:

Is the Stock Market Divorced from Reality?

September 21, 2020

A Presidential Election during a Pandemic-what will that mean for the stock market?

September 21, 2020

The Stock Market Teaches Everyone a Lesson Again

June 16, 2020

1/10
Please reload

Visit

400 S Dixie Hwy Suite 322

Boca Raton, FL 33432

Call

T: 561-391-4477

F: 561-391-8232 

Boca Raton Financial Planner
  • LinkedIn App Icon

Copyright 2020

Investment Advisory Professionals, LLC

 

Disclosure