Many investors want to know if they should invest in foreign stock markets.
Are they better than American companies? You need to make up your mind about why you want to invest in foreign companies.
It is possible that investing in foreign stocks helps in diversification.
If the U.S. market starts falling due to some local region, then investing in foreign stocks can mitigate the risk in your portfolio.
This is because the local reason may not have a big effect on the international markets.
But investing in foreign stock markets may have some disadvantages.
You need to be ready for higher charges, and your profits are subjected to the currency exchange rate.
When you invest in foreign stocks, there’s always currency risk involved.
In this video, Jack Bogle gave his view about Investing in foreign stock markets. His answer was clear, and he explained why.
Please note that his video is to show you John Bogle’s view about investing in the foreign stock market.
Please do your research before doing any investment. A good balance between return and risk is the key to investment success.
Source: Finance Jane (Shared via CC-BY)