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Finance For Dummies

Finance For Dummies offers personal finance information on investing, retirement investing, finance, insurance, credit cards, loans and more. Personal finance education is our goal.

Saturday, September 02, 2006

International Investments Enhances Domestic Portfolios

As you now know you can help your portfolio's risk/reward trade-off by including international stocks with your domestic investments.

By expanding the the set of domestic portfolios to include foreign stocks you can improve that risk/reward trade-off. In comparing a portfolio of domestic stocks and one with global investments you can receive higher returns at certain levels of risk. Because of the low correlation between domestic and foreign stocks they complement one another very well and will help your portfolio in the long-run.

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