In this episode of Success That Lasts, Jared Siegel answers questions about investing outside the U.S., stock market returns, and stock market performance after rising interest rates.
Tune in here, at delapcpa.com/podcast, or wherever you listen to podcasts:
Here are a few highlights:
- Many investors want to know why they should invest outside the U.S. “Don't put all of your eggs into one basket,” Jared warns. “If you wouldn't make a concentrated investment in one single stock, why would you limit your investment opportunities to just one country? ... If you limit the geographic exposure of your [stock] portfolio, you're limiting your opportunity set, which may increase your risk and decrease the benefits of diversification.”
- The U.S. stock market has returned 10% a year on average, but the road to the 10% can be incredibly bumpy. Returns in any particular year have ranged from as high as 54% to as low as -43%.
- “Many believe a rise in interest rates is a reflection of positive economic expectations from investors, while others believe it's more driven by inflation concerns or expectations,” Jared shares. “In reality, it's more likely a combination of all the available information.”
The Randomness of Global Stock Returns