Diversifying Your Portfolio With International Flair
This week, Craig Siminski, of CMS Retirement Income Planning, shares an article discussing the benefits and risks of investing in foreign markets using international mutual funds and ETFs:
Global economic growth is projected to drop from an estimated 6.1% rate in 2021 to 3.2% in 2022, as the world grapples with repercussions from the Russia-Ukraine war and ever-changing conditions wrought by the pandemic.
Growth forecasts of 2.3% for the United States and 2.6% for the euro area in 2022 (down from 5.7% and 5.4%, respectively, in 2021) reflect the prospect of supply constraints along with rising inflation and interest rates. China’s growth is projected to slow to 3.3% in 2022 from 8.1% in 2021 due to its restrictive zero-COVID strategy and languishing real estate sector.
Investing internationally provides access to growth opportunities outside the United States, which may boost returns and/or enhance diversification in your portfolio. But foreign securities carry additional risks that may result in greater share price volatility; these risks should be carefully managed with your goals and risk tolerance in mind.
It’s often more complicated for investors to perform due diligence and identify sound investments in unfamiliar and less transparent foreign markets. Plus, there are potential risks…
To Read the Entire Article, Please Click Here.
Craig Siminski is a CERTIFIED FINANCIAL PLANNER™ professional, with more than 25 years of experience. His goal is to provide families, business owners, and their employees with assistance in building their financial freedom.
Please let Craig know that the Green Bay News Network Sent You!