One of the most popular areas in the market this year has been energy stocks. The ongoing conflict in Ukraine has increased oil prices, and companies in the energy sector have performed very well. The energy sector is expected to remain strong for some time, and investors should consider investing in oil and gas companies. These stocks can provide investors with strong income and growth over time.
The international stock market has underperformed U.S. equities in recent years, but many emerging markets are still cheap. International index funds often focus on large existing market caps and slowest-growing economies. These factors have historically stunted international returns. So when you invest in an international fund, make sure to look at the company’s international exposure.
Another factor to consider when deciding which international companies to invest in is the level of risk you’re comfortable taking. While investing abroad can be a great way to diversify your portfolio, some countries are much more volatile than U.S. companies, so it’s important to set up a solid strategy for your non-domestic portfolio.
Diversifying your portfolio’s holdings will minimize your overall risk and increase your overall returns. In addition, international companies are a good choice for diversification because they are often in a good position for growth in the coming years.