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Therefore, it can be concluded that
Diversification. For, most investors it 's the most important rule to follow. Just as you can. Diversify by investing in a variety of funds within the domestic market you can, diversify your portfolio even more by investing. In stocks and bonds abroad.Please note that diversification cannot assure a profit or protect against loss in a declining market.
For many years. After World, War II the United States dominated the world economy. Today the international, markets have become a much more. Dynamic and multifaceted place for investors than they were in the past. Many new opportunities have, emerged overseasBut finding them requires the resources and experience to conduct a truly global search.
If your portfolio is largely. Concentrated within the U.S, you 're excluding a portion of the world' s investment opportunity set which potentially, represents. Access to some faster - growing markets and innovative companies.
Internation investments can benefits to investors as follows
.Enhanced Return Potential
By, investing overseas you have the opportunity to invest in dynamic international companies. That may be growing faster than their U.S. Counterparts.
International stocks and bonds allow you to invest in some of. The best-performing markets in the world.
Despite posting solid, long-term gains the U.S. Is rarely the leading individual. Market in any given year.Even during the bull markets of the, late 1990s the U.S. Was out-performed by markets in other countries. Investing in. Foreign stocks and bonds lets you benefit from bullish markets overseas.
Lower Volatility While international funds generally. Are more volatile than similar, domestic funds including them in your portfolio can provide, greater diversificationPotentially lowering the overall volatility of your portfolio.
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