top of page
Search

Benefits of International Investing for Diversification

  • Writer: Adam Goldfarb
    Adam Goldfarb
  • Jun 8, 2023
  • 3 min read

Investors seeking to diversify their portfolios and reduce risks can consider investing in international markets. Diversification is important because investing in a single market or country can expose an investor to more significant risks due to factors such as economic and political instability, currency fluctuations, and market fluctuations. Investing in international markets can benefit from a broader range of opportunities and potentially achieve higher returns.


One of the benefits of investing in international markets is diversification. Investing in a diverse range of markets can help minimize their risk exposure to any single market, which can help protect their investment portfolios from losses. In addition, international markets often have different growth rates and cycles than the domestic market, which means that investors can benefit from investing in both markets.


Another advantage of investing in international markets is that it can provide access to emerging markets, which often offer higher growth rates and potentially higher returns. Markets, such as China, India, and Brazil, have been growing rapidly, and some investors who have invested in these markets have seen significant gains. However, it is essential to note that emerging markets are often riskier than developed markets, as they can be subject to political and economic instability, currency fluctuations, and other risks.


Investing in international markets can also expose investors to companies unavailable in their domestic market. By investing in international markets, investors can gain access to these companies and potentially benefit from their success.


Another option for investors interested in international investing is impact investing, which is the practice of investing in companies that have a positive social or environmental impact. Impact investing has become increasingly popular in recent years as more investors are seeking to make a difference with their investments. By investing in companies that are making a positive impact, investors can generate returns while contributing to a better world.


However, it is important to note that investing in international markets also comes with risks. International markets are subject to currency fluctuations, political instability, differing financial accounting standards, economic volatility, and other risks that can impact investment returns. Additionally, investors may need help accessing international markets, as some countries may have restrictions on foreign investment.


In conclusion, investing in international markets can be a solid way for investors to diversify their portfolios and potentially achieve higher returns. However, it is important to do your research and understand the risks involved. By investing in a diverse range of markets, gaining exposure to emerging markets, accessing companies not available in the domestic market, and considering impact investing, investors can potentially achieve greater success and contribute to a better world.


Any opinions are those of the author, and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. The information has been obtained from sources considered to be reliable, but there is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Every investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Investing involves risk and you may incur a profit or loss regardless of strategy selected, including diversification and asset allocation. Prior to making an investment decision, please consult with your financial advisor about your individual situation. Investing in emerging markets can be riskier than investing in well-developed foreign markets. Investing involves risk and investors may incur a profit or loss. Past performance may not be indicative of future results.


 
 
 

Comments


Subscribe Form

Thanks for submitting!

(716) 842-0145

4549 Main St Suite 200 Buffalo, NY 14226

900 Camp St New Orleans, LA 70130

  • Facebook
  • YouTube
  • LinkedIn
  • Twitter

Raymond James financial advisors may only conduct business with residents of the states and/or jurisdictions for which they are properly registered. Therefore, a response to a request for information may be delayed. Please note that not all of the investments and services mentioned are available in every state. Investors outside of the United States are subject to securities and tax regulations within their applicable jurisdictions that are not addressed on this site. Contact your local Raymond James office for information and availability. Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members. Raymond James Financial Services is not affiliated with New Orleans Chamber of Commerce.

https://brokercheck.finra.org/

https://www.raymondjames.com/legal-disclosures

Securities offered through Raymond James Financial Services, Inc., Member FINRA/SIPC Privacy Policy</a/<a

Goldfarb Financial is not a registered broker/dealer and is independent of Raymond James Financial Services, Inc. Investment advisory services offered through Raymond James Financial Services Advisors, Inc.

Certification awarded by an independent nonprofit organization B Lab. This certification recognizes businesses that meet rigorous standards of social performance, accountability and transparency. The 2019 Best for the World lists are determined based on the verified B impact Assessments of Certified B Corporations. The B Impact Assessment (BIA) is a free Online tool designed to comprehensively measure the positive impact that businesses generate for their communities, customers, workers, and environment; administered by the independent nonprofit B Lab. Criteria can be found at https://bcorporation.net/2019-best-for-the-world. The ranking may not be representative of any one client’s experience, is not an endorsement, and is not indicative of the firms’ or the advisor’s future performance. Neither Raymond James nor any of its Financial Advisors pay a fee in exchange for this award/rating. B Impact and Best for the World is not affiliated with Raymond James.

We receive, collect and store any information you enter on our website or provide us in any other way. In addition, we collect the Internet protocol (IP) address used to connect your computer to the Internet; login; e-mail address; password; computer and connection information and purchase history. We may use software tools to measure and collect session information, including page response times, length of visits to certain pages, page interaction information, and methods used to browse away from the page. We also collect personally identifiable information (including name, email, password, communications); payment details (including credit card information), comments, feedback, reviews, recommendations, and personal profile. When you conduct a transaction on our website, as part of the process, we collect personal information you give us such as your name, address and email address. Your personal information will be used for the specific reasons stated above only. We collect such Non-personal and Personal Information for the following purposes: To provide and operate the Services; To provide our Users with ongoing customer assistance and technical support; To be able to contact our Visitors and Users with general or personalized service-related notices and promotional messages; To create aggregated statistical data and other aggregated and/or inferred Non-personal Information, which we or our business partners may use to provide and improve our respective services; To comply with any applicable laws and regulations. All direct payment gateways offered by Wix.com and used by our company adhere to the standards set by PCI-DSS as managed by the PCI Security Standards Council, which is a joint effort of brands like Visa, MasterCard, American Express and Discover. PCI-DSS requirements help ensure the secure handling of credit card information by our store and its service providers. If you don’t want us to process your data anymore, please contact us at adam.goldfarb@raymondjames.com or send us mail to: 295 Main St Ste 914 Buffalo, NY 14203. We reserve the right to modify this privacy policy at any time, so please review it frequently. Changes and clarifications will take effect immediately upon their posting on the website. If we make material changes to this policy, we will notify you here that it has been updated, so that you are aware of what information we collect, how we use it, and under what circumstances, if any, we use and/or disclose it. If you would like to: access, correct, amend or delete any personal information we have about you, you are invited to contact us at adam.goldfarb@raymondjames.com or send us mail to: 295 Main St Ste 914 Buffalo, NY 14203.

bottom of page