Why You Should Invest Internationally

December 30, 2017

Investing internationally has become a critically important part of developing a successful long-term investment plan.  It is not just that investors may achieve better outcomes when they diversify their investments among asset classes, industries, company sizes, and orientation between value stocks and growth stocks. But right now may be as good a time as ever to add international equities to your portfolio, for a number of reasons:


1. Europe is on the rebound: Europe appears to be stabilizing it’s economic and political situations, which helps ease investor uncertainty. GDP growth among the 19 countries of the EU is accelerating, unemployment is the lowest in eight years, and consumer confidence is boosted. This stabilization sets the stage for structural reforms which will benefit international investors seeking good companies to invest in.


2. Europe isn’t the only region that’s fairing well: China was able to avoid the hard landing that many feared and raw material prices have stabilized. Japan’s economy is undergoing a revival with an expanding GDP for six straight quarters. There is a demand for commodities, strong earnings from tech companies, and a growing wealth for individuals in emerging markets which boosts overall consumption.


3. The eight year bull market has put the U.S. near the top of its historical range of capitalization levels while international markets are hovering near all-time lows. Now is a good time to consider investing in markets outside the U.S.


As a part of our active investment management process, TABER Asset Management selects individual securities that are undervalued from markets anywhere in the world.  We believe that if you search for bargains worldwide, you may find more bargains and potentially better bargains than if one limited themselves to investing in a single geographic region.


This process distinguishes our firm from many wealth management firms who rely upon passive index funds, or an overly diversified portfolio of mutual funds, equity index annuities, and unit trusts to invest their clients' assets.  Our approach works well for individuals who are looking for a steady, proven approach for the investment of 401K rollovers, IRAs, and other types of long term retirement plans.  


If you have $250,000 or more to invest, please contact us at invest@taberasset.com or call us at 515-557-1860. We can help you create wealth and financial peace of mind.


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