The US markets, especially the largest companies in the US with the ability to both source labor and sell goods internationally, have done incredibly well in the very recent past.
Because of this recent outperformance, I know there are people that are considering eliminating international investments until “things clear up” (or something equally fuzzy) on the international investing front.
DON’T DO IT!
It is beyond routine to watch people sell out of underperforming assets and buy into assets who have recently experienced outperformance.
Excellent long-term performance requires NOT chasing immediate past performance which was neither predictable nor controllable before it was witnessed.
Stay asset-allocated, diversify internationally, and re-balance.
Related Mindful Money Minute Videos:
- What is Financial planning?
- How does Financial Planning integrate with Portfolio Design… exactly?
- Market Volatility is Market Reality! (August 2015 edition)
- Volatility is Normal; Volatility is Opportunity; Volatility is Good. I LOVE Volatility. (Feb. 2016 edition)