The U.S. dollar and stocks have performed strongly in recent years. Still, the principle that “past performance doesn’t guarantee future results” underscores why creating a balanced, diversified investment portfolio is essential in providing resilience against future market fluctuations. In this video, Opes Wealth Chief Investment Officer Louis Odette explains the top three reasons investors may consider investing globally, including:
- Diversification: Diversification is fundamental to smart investing so portfolios aren’t reliant on a single market, and global assets expose investors to a range of economies, currencies, and investment opportunities.
- Risk Management: Diversifying with international investments can also help reduce risk by hedging against industry concentration and changes in the U.S. economy or politics.
- Growth and Innovation: By only investing in domestic markets, investors may miss out on access to more favorable demographics, higher growth potential, and foreign-led innovations found overseas.
Just as we benefit from the various international products we use daily — from the clothes we wear to the cars we drive — investing globally may offer unique opportunities for investors to diversify, manage risk, and tap into innovative, high-growth markets. Alongside other essential financial best practices, we’re here to help you develop an investment strategy so you can make more effective, confident decisions.
With extensive experience in investment research and strategy, Louis helps clients progress toward their goals and achieve returns through effective planning and investing. Learn more about our approach to investment management and how we integrate a broad range of asset classes beyond traditional stocks and bonds. Start by completing your Personal Financial Snapshot so we can learn more about you.
Transcript:
Think about all the imported products you use in your daily life, whether that’s a German car, Japanese TV, or sneakers from Vietnam. Replacing all those items with ones from the U.S. market would be quite challenging. Just like we shop globally, there are compelling reasons to invest globally as well. First, you need diversification, and international assets can provide that by giving you exposure to different economies and currencies, as well as providing access to a broader investment opportunity set. Second, international investments help you to manage risk by providing a hedge against the U.S. economy, politics, and industry concentration. And third, growth and innovation. Overseas markets often have favorable demographics and higher growth potential than the U.S. Plus certain innovative industries are led by foreign firms. U.S. stocks and the U.S. dollar have been dominant over the past decade but as my compliance officer likes to remind me, past performance may not be indicative of future results. Don’t miss out on future opportunities by driving with the rearview mirror. Invest globally today.
Written by: Louis Odette
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