The last two sessions have brought a sudden flow of positive news. So far, it seems to be shifting sentiment away from trade wars and currency crises to optimism and value hunting. We’re seeing that in the euro (@EC) and emerging markets.
Investing internationally is often seen as a great way to achieve these goals.
Diversification benefits occur when a portfolio is made up of low correlated assets across various markets and sectors. This is quite hard to achieve if you are only invested in one market, especially if it is concentrated by only a handful sectors. In addition, by exposing your portfolio to a variety of sectors, your potential return may be greater if you are able choose the right investments rather than having your funds allocated to an underperforming one.