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A Publication of WTVP

Are you traveling abroad this summer? If so, you won’t be alone. Increasingly, Americans seem to have gotten the “travel bug.” In fact, over one-third of the population now holds valid passports, according to the U.S. Department of State. Of course, seeing the world can help broaden our horizons in many aspects of life—including how we invest.

Investment prospects now exist in every part of the planet. However, you might wonder why you should invest globally. Aren’t there enough good opportunities right here in the United States?

The U.S. does indeed provide a wealth of investment choices, but you can still receive at least two key benefits from international investing. Let’s take a quick look at them:

Although international investing provides some key benefits, it also carries some unique risks. For example, when you invest in companies based overseas, you may encounter political instability, which could threaten the financial markets of a country or an entire region. You could also experience currency risk, which means that changes in the value of the U.S. dollar, relative to foreign currencies, could harm the value of your investments.

In any case, you probably won’t want international holdings to ever take up a majority of your portfolio. How much should you own? Again, there’s no right answer for everyone. Your investment mix should be based on your risk tolerance, time horizon and individual goals. And because of the complexities involved with foreign markets, you may well want to work with a financial professional—someone with the expertise and resources to evaluate the pros and cons of international investments. By looking past U.S. borders for investment opportunities, you can expand your horizons for potential investment success. Bon voyage! iBi

Fran McKay is a financial advisor with Edward Jones at The Shoppes of Grand Prairie.

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