Look beyond borders for investments - Ahwatukee Foothills News: Money

default avatar
Welcome to the site! Login or Signup below.
|
||
Logout|My Dashboard

Look beyond borders for investments

Print
Font Size:
Default font size
Larger font size

Related Stories

Posted: Saturday, July 6, 2013 9:06 am

Are you traveling abroad this summer? If so, you won’t be alone. Increasingly, Americans seem to have gotten the “travel bug.” In fact, over one-third of the population now holds valid passports, according to the U.S. Department of State. Of course, seeing the world can help broaden our horizons in many aspects of life — including how we invest.

Investment prospects now exist in every part of the planet. However, you might wonder why you should invest globally. Aren’t there enough good opportunities right here in the United States?

The U.S. does indeed provide a wealth of investment choices. But you can still receive at least two key benefits from international investing. Let’s take a quick look at them:

• Growth potential. As you know, the United States is a highly developed economy. That doesn’t mean, of course, that we have no “upside” here — we do, and we always will. Nonetheless, you can also find growth opportunities in foreign markets. Which ones? There’s never any one “right” answer. Since it’s almost certainly futile to try to guess which areas will perform the best in any given year, you’re much better off looking for solid investment opportunities in all regions of the world. 

• Diversification. By investing internationally, you can help diversify your portfolio. The world’s financial markets are connected to each other, but they don’t always move in unison. In any given year, the U.S. markets may be down, but international markets might be doing significantly better. Consequently, if, during that year, you had only invested in U.S. companies, your portfolio would have taken a hit, but if you had spread your investment dollars around the world, your year-end results might have looked considerably different. Keep in mind, though, that while diversification can help reduce the effects of volatility, it can’t guarantee profits or protect against all losses.

In any case, you probably won’t want international holdings to ever take up a majority of your portfolio. How much should you own? Again, there’s no right answer for everyone. Your investment mix should be based on your risk tolerance, time horizon and individual goals.

And, because of the complexities involved with foreign markets, you may well want to work with a financial professional — someone with the expertise and resources to evaluate the pros and cons of international investments.

• This article was written by Edward Jones for use by Ahwatukee Foothills Edward Jones Financial Advisor Kim DeVoss, CFP. Reach her at (480) 785-4751 or Kim.DeVoss@edwardjones.com.

More about

More about

More about

  • Discuss

Arizona General Election Poll: Donald Trump Holds 7.5% Lead Over Hillary Clinton…

A new general election poll of Arizona voters (full pdf below) conducted by independent organization IWS research shows Donald Trump with a 7.…

Published: July 31, 2016 - 3:02 am @ https://theconservativetreehouse.com/2016/07/31/ar…

American student finds 12th century Irish brooch on a Galway Beach (PHOTOS)

McKenna McFadden, an Irish American film and television major at New York University, is in Dublin for the summer with an NYU program. She was…

Published: July 31, 2016 - 2:26 am @ http://www.irishcentral.com/news/American-student-…

Phoenix Planning for a New Approach to its Urban Forest

A city famous for tall palm trees wants to find some shade.William Yardley reports on an ongoing planning effort in Phoenix to cultivate a tre…

Published: July 30, 2016 - 11:01 pm @ http://www.planetizen.com/node/87654/phoenix-plann…

Phoenix police ask for help identifying woman whose remains were found in June

PHOENIX - Police are asking for help identifying a woman whose remains were found about a month ago. Officers say an unknown woman's body was …

Published: July 30, 2016 - 10:52 pm @ http://www.abc15.com/news/region-phoenix-metro/cen…

Who is Funding Hillary Clinton? Here's The List

If you want to know what kind of president someone will be, pull back the curtain and look at who’s funding them. As we do that with Hillary C…

Published: July 30, 2016 - 9:54 pm @ http://www.thefederalistpapers.org/us/who-is-fundi…

Phoenix police: Man injured in shooting; may be connected to other case

PHOENIX - Police say two incidents involving firearms may be connected. Officers responded to a neighborhood near 35th Avenue and Broadway aro…

Published: July 30, 2016 - 9:00 pm @ http://www.abc15.com/news/region-phoenix-metro/cen…

The Next President Will Likely Appoint 4 Supreme Court Justices

Which President Do You Want Picking Them? This election is all about the Supreme Court that will shape our lives for the next 30 years.AlterNe…

Published: July 30, 2016 - 8:54 pm @ http://portside.org/2016-07-30/next-president-will…

This one book will help you better understand solar energy

On the jacket of the book by Philip Warburg, “Harness The Sun: America’s Quest For A Solar-Powered Future,” Rep. Henry Waxman’s description na…

Published: July 30, 2016 - 8:52 pm @ http://www.sgvtribune.com/environment-and-nature/2…

Now Available On iBooks: “Harry Potter and the Cursed Child Parts I & II”

Yes, fans of all things Hogwarts will be mightily excited to hear that today officially marks the release of the eighth book in the award-winn…

Published: July 30, 2016 - 8:52 pm @ http://razorianfly.com/2016/07/31/now-available-on…

Houston Chronicle Editorial Board Issues Early Endorsement of Hillary Clinton

For only the second time in several decades and atypically early in an election year, the major regional newspaper Houston Chronicle issued an…

Published: July 30, 2016 - 7:53 pm @ http://www.snopes.com/2016/07/30/houston-chronicle…

Facebook

ahwatukee.com on Facebook

Twitter

ahwatukee.com on Twitter

RSS

Subscribe to ahwatukee.com via RSS

RSS Feeds

Spacer4px

Most Popular

Online poll

Loading…