International mutual funds are an essential part of your investment portfolio. If you are limiting yourself to domestic funds, you are missing out on a huge opportunity for your dollar's growth.
Looking to foreign companies for investment opportunities is a wise move. They are not subjected to the same taxes placed on US companies nor are they required to follow the same environmental or other guidelines that hamstring profitability.
Additionally, with the decline of the US dollar, I am uneasy about putting my money in an economy whose currency is likely to be worth less tomorrow than it is today. The rising annual debt, the increasing trade deficit, and the rising fuel costs push me to look outside the US for my investment targets.
Going with international funds also allows me to get a small slice of a global pie. The world's economy is much larger than the US'. This allows me greater avenues to offset loss on the same global scale. National economies have their ebb and flow just as individual stocks do. Some days, one country is up and the next it is down a bit. It will all balance, but overall, the world's economic picture has a much better outlook than viewing one country's alone.
Click here to find out more about how international investing is not at all as complicated or scary as you might think. It just makes sense.
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