Question

I have no interest in investing internationall. The U.S market has out performed international markets in...

I have no interest in investing internationall. The U.S market has out performed international markets in many years because virtually no combination of international investment can outperform a solely U.S investment portfolio, I will not diversify internationally”
Critically discuss the following comment:
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

It is a good thing that US market has outperformed international markets but US market is developed market and the return might diminish in the future. It is highly possible that US market may not be able to enjoy returns which it is enjoying now. Stable and developed countries has lower growth potential than developing and emerging countries. For example: India is a developing country and it has tremendous grwoth potential in the future.Companies from across the globe are investing in india to make use of this opportunity.

So one should always diversify no matter what is the return he is getting today. Diversification is like a support function to the investment. If you put all your money in single source and if it goes haywire (lke 2008 US Crisis), you will loose all your money. But if you diversify your investment, you will not end up empty handed,

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Critically Discuss the following comment: "i have no interest in investing internationally. The u.s. market has...
Critically Discuss the following comment: "i have no interest in investing internationally. The u.s. market has outperformed international markets in many years. because virtually no combination of international investments can outperform a solely u.s. investment portfolio, i wil not diversify internationally."
"Clayton Moore is the manager of an international money market fund managed out of London. Unlike...
"Clayton Moore is the manager of an international money market fund managed out of London. Unlike many money funds that guarantee their investors a near​ risk-free investment with variable interest​ earnings, Clayton​ Moore's fund is a very aggressive fund that searches out relatively​ high-interest earnings around the​ globe, but at some risk. The fund is​ pound-denominated. Clayton is currently evaluating a rather interesting opportunity in Malaysia. Since the Asian Crisis of​ 1997, the Malaysian government enforced a number of currency...
4. Interest rate parity The rise of globalization is due to the many companies that have...
4. Interest rate parity The rise of globalization is due to the many companies that have become multinational corporations for various reasons—for example, to access better technology, to enter new markets, to obtain more raw materials, to find funding resources, to minimize production costs, or to diversify business risk. This multimarket presence exposes companies to different kinds of risk as well—for example, political risk and exchange rate risk. The relationship between interest rates and exchange rates can be represented through...
Please write a repose to the following post: After reading this case I believe that Domino's...
Please write a repose to the following post: After reading this case I believe that Domino's has done a great job of marketing their establishment as a whole, in 2012 Domino's took the word Pizza from their name just to put emphasizes on all of the other products that they have that are not Pizza. That shows me that they are paying attention to their competitors and they have a great strategic marketing team that gives them great insight on...
You are out on your own and you have come into the sad issue of the...
You are out on your own and you have come into the sad issue of the old car (20+ years old, 150k miles) your parents gave you having a blown transmission unexpectedly. (It really wasn’t. You just put it off because it’s not cheap.) You now have the dubious choice to purchase a new\used car OR to repair the car your parents gave you free and clear. Assume you have a part-time job making $10 an hour at 30 hours...
China has taken some hits, but may still prove a force to be reckoned with. Emerging...
China has taken some hits, but may still prove a force to be reckoned with. Emerging markets could benefit from China resurgence. Lisa Shalett Wealth Management Head of Investment and Portfolio Strategies Morgan Stanley August 6, 2018 As global growth slows, trade tensions continue to escalate and emerging markets falter, investors have good reason to wonder if China is the force it once was. China is likely central to how trade, currency fluctuations and the global growth outlook may ultimately...
Consider the following competetive economy K=150 L=150 Production Function= Y=K^.4L^.6 Consumption Function . C=10+.7Yd I= 40-100R,...
Consider the following competetive economy K=150 L=150 Production Function= Y=K^.4L^.6 Consumption Function . C=10+.7Yd I= 40-100R, G=30, T=30 .... MPL= .6K^.4L^-.4 MPK= .4K ^-.6L^.6 Find competetive EQM by leaving out goods market in your initial computations. a) Calculate disposable income (Yd), C, Private Savings then use this information to determine the Gov Savings and National Savings b) Use national savings (S) and the investment function (I) to determine the real interest rate (r). Draw the graph of the Loanable Funds...
Importance of prospective analysis For years, two great armies of investors have done battle on Wall...
Importance of prospective analysis For years, two great armies of investors have done battle on Wall Street. In one camp stand growth investors, willing to pay dearly for companies they believe can generate big profits for years to come. In the other camp are value investors. They’ll buy only into companies with real assets and solid earnings in the here and now and at bargain prices. As yet, value investing is more a framework than a set of codified rules....
Arthur Cloff is an equity portfolio manager working for E-Tuff Investments (E-Tuff) - an asset management...
Arthur Cloff is an equity portfolio manager working for E-Tuff Investments (E-Tuff) - an asset management firm based in California, USA. Cloff was recently invited to a seminar by the California Investment Council (CIC) in collaboration with the Financial Institute of Portfolio Managers (FIPM). The seminar gathered equity analysts and portfolio managers from some of the leading asset management firms in the USA. Tom Mahard was the guest speaker at the event. After the seminar, Mahard held an informal discussion...
Read the article ‘How stocks test young investors’. When deciding how much to invest in stocks,...
Read the article ‘How stocks test young investors’. When deciding how much to invest in stocks, Mr Kitces says, your first consideration should be how comfortable you are with risk to begin with. This is what’s known as your ‘risk tolerance. ’ The problem: Investors — particularly young ones — are notoriously bad at predicting how much money they are willing to lose. Compounding the problem, young investors, due to their lack of experience in the markets and overall financial...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT