The phrase
"international stocks" refers to stocks or shares of companies that are based in countries outside of your own. It means investing in the ownership of companies from different countries around the world.
Full definition
I do not believe that investing in companies that generate a majority of their sales overseas is the same thing as investing
in international stock markets.
While it's difficult to pick the best performing country every year, a diversified global portfolio offers the benefits of
international stock market performance which in turn lowers risk.
It also performed well
with international stocks, industry groups, stock indices, bonds, real estate, commodities, and currencies.
Small stocks and many
international stocks don't pay much income; income from high - yield and foreign bonds may be higher than for high - quality bonds, but also more variable.
While
adding international stocks to your portfolio could end up being a smart move, you should also avoid making any of these five investment mistakes.
International stocks also look attractive relative to domestic ones thanks to lower valuations and generally higher dividend yields.
They offer diversification across multiple asset classes, including domestic and
international stocks across varying styles and market capitalization ranges, investment grade and high yield fixed income, and short - term investments.
See for yourself why we believe now is the time for investors to rethink international equity exposure and consider
increasing international stock allocations.
For example they will select large, mid and small cap domestic stock funds and
various international stock and possibly even «alternative» funds.
History shows that
international stocks provide diversification benefits over the long term, even though correlations become close during times of crisis.
If you can not get economical international exposure via bond mutual funds, you certainly can do so with low cost
international stock mutual funds.
While past performance is no guarantee of future performance, this suggests that the cycle will swing back toward
international stocks at some point.
The new ETFs, which will offer exposure to developed, emerging, and whole -
world international stocks, should begin trading later this month.
Specifically, we can ask whether the higher beta of
international stocks relative to domestic stocks has come during periods of rising or falling markets.
Others might simply state that stock assets throughout the world currently have a fair risk - reward relationship;
international stocks carry greater risks, but continue to produce higher rewards.
If you're more risk adverse, you'll want to consider your exposure to riskier assets, such as real estate, commodities, and
even international stocks and bonds.
International stocks often pay dividends annually rather than quarterly, allowing the fund's managers to move in and out of stocks based on the timing of their payouts.