A strong U.S. economy, continued global growth improvement, a concerted effort by global central banks to remain accommodative as long as possible, and a general sense of complacency about valuations in the equity markets provided the backdrop for 2017’s wins.

As January began, it was clear that 2017 was going to be a tough act to follow for investors. It was a year marked by historically low volatility, essentially unchanged Treasury yields, and a straight up trajectory for equity markets, and as such, it seemed unlikely for this Goldilocks scenario to repeat itself again in 2018.

If there is one thing that all investors can agree on from the first quarter of 2018, it is that volatility in the markets is most certainly back. But what does that mean, and why is it such a critical data point for market participants?

Boston Private analysts Nicole Coombes and Paul Fortin are “bullish” about international equities right now, the long-term benefits of global investing are even more important they say. Here’s why.

Historical performance over the past forty years has shown that domestic and international stocks have moved in cycles of alternating performance. Investing internationally helps fill in the other part of the cycle.

Eight years into the current bull market, investors are starting to wonder if U.S. stocks are expensive. Having watched Amazon (AMZN) march from $300 per share in 2015 to over $1,500 a share today, many investors wonder if it’s too late to find a bargain. Perhaps shopping in a different market is the answer.

Boston Private analysts agree that globalization has led to the creation of increased investment opportunities, as companies have become more intertwined and globally focused.

A quick scan of American investors shows that U.S. equities make up roughly 75% of their equity portfolios, whereas the U.S. represents only 53% of the world’s stock investments.

In what seems to typify modern markets, price and yield moves that used to take several months, now happen in a matter of weeks or merely days. The start of 2018 has been characterized by volatility and another leg higher in yields.

On the heels of the strongest January experienced by U.S. stock market participants since 1997, the first days of February have proven a sharp reminder of what volatility in all its forms truly feels like.