Global markets are facing increased volatility due to heightened geopolitical tensions between the United States and Iran, which could also impact U.S. stocks. As of now, the S&P 500 is near break-even for the year, while the iShares MSCI Brazil ETF (EWZ) has risen over 20%, highlighting the advantages of international diversification.
Investors are encouraged to explore foreign markets, especially as many are valued significantly lower than their U.S. counterparts. Exchange-Traded Funds (ETFs) provide a cost-effective way to gain exposure to these markets, allowing for diversified investments across various countries and sectors.
Long-term investors often benefit from portfolios that include foreign stocks, especially during periods of geopolitical turbulence. This strategy can provide smoother overall returns and reduce reliance on U.S. markets alone.
