Do You Own Developed Markets in Your Portfolio?
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What if I told you that by ignoring 40% of the world's stock market value, you might be missing out on massive growth opportunities? If you were to guess what asset class is the best performer year to date, what would be your best guess?
In this week's episode, we dive into why developed international markets deserve a place in your portfolio and how proper diversification could be the key to unlocking your financial future.
You might be thinking, "Brian, why should I care about markets outside the U.S.?" Well, let me share three compelling reasons:
First, let's talk about diversification. When you invest only in U.S. markets, you're essentially putting all your eggs in one basket. Think about companies like Toyota, Samsung, Nestlé, and LVMH – these are powerhouse companies that aren't listed on U.S. exchanges.
Second, different markets move in different cycles. When the U.S. market is underperforming, developed international markets might be experiencing growth. For example, during the "lost decade" of 2000-2009, when U.S. stocks delivered negative returns, international developed markets actually provided positive returns to investors who were properly diversified.
Third, and this is crucial – valuation opportunities. Right now, many developed international markets are trading at lower valuations compared to U.S. stocks. It's like getting a discount on quality companies just because they're headquartered in a different country.
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Brian D Muller(AAMS©), Founder, Wealth Advisor
XYPN Invest Disclaimer:
Brian Muller is an Investment Adviser Representative of XYPN Invest, an SEC-registered investment advisory firm doing business as Momentous Wealth Advisors. This podcast is not published on behalf of XYPN Invest, and the views expressed herein are solely those of Brian Muller.
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The Wealth Decisions Podcast is provided solely for general information purposes and should not be construed as accounting, legal, tax, or any other professional advice. Visitors are advised not to act upon the information or content found here without first seeking appropriate guidance from a qualified accountant, financial planner, lawyer, or other relevant professional. Any hypothetical performance is just that, and there is no guarantee that you will receive a specific average rate of return in any examples in this podcast.
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58 episodes