Why Your Portfolio Needs International Stocks

#Morningstar  #StockInvesting #StockMarket

The long-term strategic rationale for building a global portfolio.

00:00 Introduction

00:20 U.S. Stocks Continue to Climb

02:11 Don’t Neglect Investments Outside the U.S.

04:59 How Has the Strong Dollar Played a Role in U.S. Stock Performance?

07:00 Bonds and International Markets

08:27 The Strategic Value of Owning International Stocks



What to watch from Morningstar.



Read what our team is writing.



Follow us on social.

[StevenDonald]

Every crash/collapse brings with it an equivalent market chance if you are early informed and equipped, I've seen folks amass up to $1m amid economy crisis, and even pull it off easily in favorable conditions. Unequivocally, the collapse is getting somebody somewhere rich.

[bryanpoulsen]

Glad I've taken vanguards advice and had all retirement investments in their target date fund for the past 15 years. That constant drag on performance from the international allocation is super sweet.

[jecny]

I generally agree with this guy's take. US stocks are looking a little pricey and as an asset class exUS equities are looking somewhat attractive. I don't try to time markets and I don't engage in speculative investing, i.e. stock picking. All of my stock holdings are in two funds, VOO and VXUS. But yeah, it's hard to imagine that the next twenty plus years will see the kind of dominance by American stocks that we have seen since the end of the Second World War.

[goldenjay]

diversify within us stocks...international stocks are deworsification

[jbdmb]

That smile on the thumbnail is how I imagine Patrick Bateman would smile after practicing for months

[billobrian]

The arguments are sound, but one issue for those of us whose wealth is mostly in IRAs and 401ks is that foreign countries tend to impose taxes on dividends from their companies even if the stocks are held by foreigners such as US taxpayers. These taxes cannot be offset by the foreign tax credit if the stocks are held in IRAs etc. These taxes make investment in foreign companies highly unattractive. Am I missing something?

[stevelamprou]

The story of the US markets / magacap techs is the story of the FED dropping trillions of new dollars of liquidity. It's an isomorphism, as mathematicians would say. Other central banks could not do that without seriously devaluating their currencies (they did it to a far less extend), ECB included - let alone the ideological objections of the Germans.

[SylviaJoe]

The Market have been suffering over the past month, with all the three indexes recording losses in recent weeks. My $400, 000 portfolio is down by approximately 20%, any recommendations to scale up my returns before retirement will be highly appreciated.

[jamesmorris]

Non-U.S. stocks: the ultimate example of "Waiting for Godot". The EAFE index was higher in 2007, than it is in 2023!! I'm 61...I don't have a few more DECADES to wait, for "reversion to the mean"!! I'm staying ALL U.S; ALL THE TIME. If it was good enough for Jack Bogle..it's certainly good enough for ME.

[TrendyStone]

With Europe and Asia in demographic collapse (minus India) reversion to the mean could be a long way out.

[phd_angel]

Yeah, international growth sucks but pays dividends... cha-ching...

[rickallen]

Disagree. International has been garbage.