Should You Invest in International Stocks?

Should You Invest in International Stocks?

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[justinjohnson]

I laughed so hard at Bo's teeth companies joke!!

[Direct.injection]

Maybe take a look at ETF iXUS. Definitely like my international. I love my US stocks but this is a global economy and don't want to avoid companies like Taiwan Semiconductor, She'll PLC, Samsung, AstraZeneca, Toyota, Rio Tinto.

[goldkirby]

Buy VT and automatically get whatever the current domestic/international market cap is; no one knows the future, so just buy the whole market

[Random-ldwg]

one of the worst things i did was do a major reallocation in 2012 from S&P to international and then continue getting more investments into international as it was more undervalued as the US market had already gone up too much from 2009. i should just have let it run. over the past 20 yrs i haven't seen much non correlation between the us and international markets. i have taken off my international exposure this past year with all expected tightening from all central banks and i do think the US will weather the storm best. as frequently mentioned there's already significant international exposure in the earnings of US multinationals. i did ride the latin american commodities boom in the mid 2000s. some markets i think will always remain undervalued compared to the US due to the lack of stability and transparency in their respective countries financial systems.

[chrisaustralianfinance]

I think from a 2 fund/3 fund portfolio, Australians are very lucky. Using for example VAS (Australian 300) and VGS (world 1500), you get a nice mixture. Australian 300 does well but historically under performs the S&P500 however has great tax advantages that make it good as long as you're living in Australia. The benefit of a fund such as VGS is that you get all the exposure of the S&P500 + another 1000 companies globally. Yes it does also underperform a straight S&P 500 index because of diversification but its nice just having everything "international" in one basket to buy. No overthinking about how some countries or areas have done worse than the US.

Much harder as a US investor looking at the S&P500 vs international markets which are just terrible in comparison to in the last 2 decades.

[firemedic]

The short answer? No! Unless you simply want to check off the diversification box.

[basehead]

i’ve had international funds for 20 years now and theyve been consistently terrible.. at a certain point i don’t have the time to wait for them to come back

[louisdelillo]

International may have underperformed U.S. stocks, but they have trounced cash. So I would say that they have been great investments if you used a total international stock fund.

From Jan 1, 2010 to Nov 30, 2022, I see the following CAGR numbers (with dividends reinvested):
1. International stocks (using Vanguard's VGTSX): 4.17%
2. Cash: 0.58%

[ddellwo]

I had an international exposure in my 401(k) for quite a few years and it just never did much. Finally went all US and haven’t given it a second thought even though there may be more volatility in the US markets……😐

[rockystaatz]

Ask yourself why it’s almost all index or funds. When some international companies stocks are awesome & good businesses with good dividend and historical returns

[rogerdoger]

You asked what Jack would thing? He said they had all the funds besides the S&P500 and TMI because the consumers wanted it. Not because he thought it was a good idea.

[mattbenz]

Merry Christmas and happy 8th day of Hanukkah! They both landed on the same day this year!

[John-mzte]

We use products and services from international companies every day, yet a lot of people with home country bias don't want to invest in those same companies. Makes no sense.

[johnristheanswer]

UK stayed flat this year. USA down 20%. So worth spreading the risk imo.

[jep]

People in Japan were probably asking the same thing until the late 20th century.

[nicholasmartinez]

Teeth companies… I like that one. Reminds me of Forest Gump investing in fruit (Apple) 😂

[fastmaker]

International stocks have always, will always, and currently under perform domestic. The reason financial advisors recommend international is to make investing more complicated to justify their jobs.

[starvingbymidnight]

Adidas, Unilever, Nestle, GSK, etc are international brands.

[kylen]

Here’s the easy answer….you really don’t need to these days. Businesses are so globalized nowadays. If you invest in sp500, you will get plenty of global exposure. But if you want more…go for it

[MrKyle]

Emerging markets are where the future money will be made.