The Case for International Investing
International investing has become an increasingly attractive option for investors looking to diversify their portfolios and capitalize on opportunities outside the US market. With US tech stocks showing signs of overvaluation and overseas valuations looking increasingly attractive, now may be the time to consider allocating a portion of your portfolio to international markets. One option to consider is the Main International ETF, which aims to outperform the MSCI All Country World ex-USA Index® through a dynamic asset allocation strategy that focuses on undervalued areas.
Active Overseas Allocation
While the Main International ETF has experienced underperformance since its inception, its active management approach could pay off in the long run. By capitalizing on inefficiencies in overseas markets, the fund has the potential to deliver future outperformance compared to passive index funds. This focus on undervalued areas could be particularly beneficial in a market where US tech stocks are trading at elevated levels.
Potential Benefits of International Investing
Investing internationally offers a range of benefits, including diversification, exposure to new growth opportunities, and the potential for higher returns. By spreading your investments across different markets, you can reduce risk and increase the likelihood of achieving your financial goals. In addition, investing in undervalued international markets could provide a source of alpha that is not available in the US market.
Overall, international investing may outperform in the current market environment, making it a compelling option for investors looking to enhance their portfolio’s performance and reduce risk.
How This Will Affect Me
For individual investors, the shift towards international investing could provide an opportunity to diversify their portfolios and potentially boost returns. By allocating a portion of their investments to overseas markets, investors may be able to reduce risk and take advantage of opportunities in undervalued regions. However, it is important for investors to carefully consider their risk tolerance and investment goals before making any changes to their portfolio.
How This Will Affect the World
The trend towards international investing could have wide-reaching implications for the global economy. As more investors allocate capital to overseas markets, we may see increased liquidity and investment in countries that have historically been overlooked. This could help to spur economic growth and development in emerging markets, while also deepening connections between global financial markets.
Conclusion
International investing presents a compelling opportunity for investors seeking to diversify their portfolios and capitalize on undervalued opportunities outside the US market. With the Main International ETF offering a dynamic asset allocation strategy focused on outperforming global indices, investors may see potential for future outperformance and reduced risk. It is important for investors to carefully assess the risks and rewards of international investing before making any changes to their portfolios.
