Investing without borders

2017 Returns | |
---|---|
International Benchmarks
• MSCI Emerging Markets
• MSCI EAFE (Europe, Asia, Far East)
• MSCI ACWI ex US (all countries minus US)
|
37.28% 25.03% 27.19% |
Domestic Benchmark
• S&P 500
|
21.83% |
Leave your ‘comfort zone’ and invest internationally
1. Gain access to new investing opportunities.
You don’t want to miss out on the opportunities being fueled by emerging economies, privatization, and the elimination of trade barriers throughout the world. “There’s really wide breadth and depth to the economic expansion and people need to have international exposure to access it,” says Coombes.
Three reasons you should go global >
2. Benefit from attractive stock prices/lower valuations.
The international investing landscape continues to be very attractive in terms of stock prices, says Fortin. “When we look at 12-month forward price-to-earnings (P/E) ratios—which give us a good representation of stock valuations—we see that international stocks are considerably cheaper compared to domestic stocks.”
International stocks are relatively cheaper than U.S. >
3. Achieve better diversification and risk-adjusted returns.
“With a diversified international equity portfolio, when the U.S. markets aren’t as strong, you can have the benefit of exposure to international stocks, which may be stronger,” says Coombes. Diversifying your portfolio by investing in both international and domestic (U.S.) stocks also improves your portfolio’s risk-adjusted return, according to Fortin.
Adding international equities can improve overall return, reduce risk >
4. Eliminate ‘country bias’ and other barriers.
Holding on to a “buy American” bias can limit your potential for long-term investment growth. So can expecting U.S stock growth to continue unabated and viewing international investing as too complex. You can eliminate all three obstacles by including international equity funds in your investment portfolio.
Why ‘buy American’ shouldn’t apply to your investment portfolio >
After you invest overseas, stay the course
How Boston Private can help
To explore the opportunities and risks of increasing your portfolio’s allocation to international investments, talk with your Boston Private advisor.
To learn more about how Boston Private can help you create a customized investment portfolio, watch this quick video: How Boston Private Constructs Actively-Managed, Diversified Portfolios
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The opinions expressed and information contained in any article published in the Vault are given in good faith and considered reliable. However, such opinions and information are subject to change without notice and are provided only as of the date issued. Neither Boston Private nor its affiliates warrant the completeness or accuracy of such information. Any third-party opinion is solely the opinion of its author and does not necessarily reflect the opinion of Boston Private or its affiliates. The materials on this website are for informational purposes only and do not take into account your particular investment objective, financial situation or need. Since each client’s situation is unique, you should consult your financial advisor and/or tax planning professional before acting on any information provided herein.
