Investors are advised to consider investing overseas due to potential outperformance and diversification

From Yahoo Finance: 2025-07-01 09:05:00

The global economy faces volatility under President Trump’s second term, leaving investors uncertain. International stocks have outperformed the S&P 500, with a 19.5% return compared to 5.73%. Despite historical underperformance, advisors recommend a moderate allocation to foreign equities for diversification. Matching personal objectives and risk tolerance is crucial in deciding on investments.

International equities have outperformed U.S. markets in the past, with markets outside the U.S. surpassing domestic returns from 2001 to 2010. Foreign stocks tend to be value-oriented, while U.S. gains are driven by tech giants. A blend of international and U.S. stocks could reduce portfolio volatility and improve long-term performance.

Investors are considering international stocks amidst market uncertainty. An overview of key factors to consider when making investment decisions abroad. Foreign stocks offer value-oriented opportunities with lower valuations and higher dividends. Matching investment style with market conditions can lead to sound investment decisions.

Read more: Does the Trump Economy Mean Investors Should Look To Invest Overseas?