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April 8, 2021 10:05 AM
E. Napoletano - Forbes Advisor
Posted:
Updated:
April 10, 2021 7:08 AM
Owning international stocks—the shares of companies located outside your home country—can help diversify your portfolios, hedge against risk and tap into growth in economies beyond your own. Here’s what you need to know to start adding stamps to your investing passport.
Why Should You Buy International Stocks?
You probably already know how important diversification is in your investment portfolio. By spreading your money out among tens or hundreds of companies, you decrease the risk you lose money overall if one investment goes south.
Given the vast amount of choice in the U.S. stock market, you might think you have all the investment options you need to properly diversify without ever looking at companies beyond American borders. But companies beyond those traded on the U.S. stock exchanges can be powerful assets with multiple benefits.