Summary
The S&P 500 has outperformed international stocks for the past 12.8 years. The U.S. has only been the top performer four times during this period. Austria has claimed the top spot five times, while Switzerland has done so four times. U.N. Secretary-General Ban Ki-moon says the U.K. should focus on investing in domestic companies.
Investing in international stocks is not as easy as you might think. There are a plethora of international stock exchange traded funds to choose from. You can also choose to invest in a preferred international stock. The risks of investing in international stock are higher than in domestic stocks.
Investing in assets prone to unknown external factors can be risky. The U.S. is one of the most stable countries in the world. The S&P 500 outperformed the MSCI All Country World Index by more than 10%. The U.,S. has a stable economy and a stable currency.
The New York Stock Exchange is about four times bigger than the Japan Exchange Group. The Taiwan Stock Exchange has an estimated $1.6 trillion market capitalization. In the U.S., corporate governance standards are lower than those in other countries. The U.K. has the highest level of corporate governance in the world.
Investing in international stocks is like selling your vacation home. The U.S. is the preeminent country for wealth accumulation. U.N. Secretary-General Ban Ki-moon is a strong advocate of investing in U.K. stocks. The world's largest economy is the U. S.
International stocks may appear cheaper compared to their counterparts and stock markets in the United States. However, these lower valuations often reflect underlying risks, with corporate governance being a primary concern. For investors seeking higher-risk opportunities, investing in emerging markets may hold greater appeal.
China and India stand as significant international competitors to the United States. The cheap valuations of international stocks and countries often reflect underlying reasons. If you had invested in the MSCI Emerging Markets Index back in 2009, over fifteen years later, you would have experienced a loss.
