From CNBC: 2025-04-17 12:55:00

Investors are shifting towards international equities, concerned about U.S. market risks amid trade tensions initiated by President Trump. S&P 500, Dow, and Nasdaq have dropped significantly. Experts debate sticking with U.S. stocks which have historically outperformed, despite recent global diversification trends.

Sharp sell-off in U.S. markets raises doubts about U.S. asset attractiveness. Trade tensions impact bond market and weaken the U.S. dollar. Former Treasury Secretary Yellen expresses concerns over the uncertainty created by Trump’s tariffs. International and U.S. stock returns fluctuate cyclically, with historical trends suggesting international equities may soon outperform.

Analysts caution investors to tread carefully amid market volatility. Consider a global stock fund like Vanguard Total World Stock Index Fund ETF for balanced exposure. Reduce international stock exposure closer to retirement to mitigate currency exchange risks. Financial advisors stress the importance of international diversification in well-rounded portfolios for long-term success. Despite recent volatility, non-U.S. equities have helped offset tariff impacts. Financial advisors caution against sudden changes. Rebalancing may be wise, but tread carefully. Increased interest in foreign stocks due to strong performance. Maintaining appropriate foreign allocation key. Current market conditions call for strategic investment decisions.

Read more: Should investors dump U.S. stocks for international equities? Experts weigh in