Diversification with International Exposure

Feeling uneasy with the global economy right now? Remember: Portfolios that include international exposure have historically performed better (and with less risk) than those that don’t.

The goal of diversification is to have broad exposure to different areas that are not perfectly correlated (such as the US and international markets). When one part of the portfolio goes down, it is offset by another part that behaves differently.

Trying to time movement in the market is not a viable strategy. We know the markets will react to political & economic events – we just don’t know when or by how much. Successful market timing requires getting two things correct – when to get out of the market and when to get back in. When investors react emotionally, they tend to buy high and sell low.

During the planning process, I help you determine a balance you are comfortable with, and can stick with, always at a time when things are not emotional.

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