Many investors are reluctant to invest overseas. Over the past ten years, foreign stocks have underperformed in the U.S.
Should you stick to only domestic stocks?
According to Morningstar, no. Alex Bryan, director of passive strategy research in North America for Morningstar, believes it’s important to diversify portfolios internationally for the long-term. U.S. stocks have been strong in the recent past but they are known to go through long stretches of underperformance when compared with foreign stocks.
Exposure to international stocks can help diversify across stocks, sectors and markets.
In his interview with Christine Benz, Bryan goes on to discuss just how much exposure to consider in international stocks and the trade-offs to consider.