Valuations are high on U.S. markets, and the gains we’ve seen over the past year could begin to slow. American markets are pricing in the anticipated impact the Trump administration will have on earnings, but the extent of his proposed tax cuts and regulatory reforms is uncertain. The inflationary impact of these programs could prompt the U.S. Federal Reserve to become more aggressive, and rising rates could eventually undermine equities.
Peter Newman of Black Pearl Group, an investment firm providing unique investment opportunities to accredited investors across a wide range of industries and countries, suggests now is a good time for investors to diversify their portfolios by investing in foreign markets.
According to Newman:
- Investors tend to have better outcomes when they diversify across asset classes, company sizes, industries, and markets.
- Investing in foreign markets helps safeguard an investor’s portfolio against dips in the U.S. dollar and can make the overall portfolio less volatile.
- There is great potential for growth in foreign markets, such as Japan, South Korea, and India.
- Investors should keep in mind that global markets are increasingly becoming intertwined across borders.
- Aside from stocks, investors should look toward investing in foreign property, which unlike a stock, has a value that’s not dependent on the nominal value of a paper currency.
- A foreign real estate investment can double as a part-time residence or vacation home that an investor can enjoy while it produces rental returns, appreciates in value, and protects their net worth.
Newman is currently available to discuss this topic in more detail. Please send all inquiries to Andrew Schetter at aschetter@webimax.com.
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