With geopolitical tensions on the rise, smart investors are turning to one timeless strategy to protect their portfolios.
Transcript:
Ted Thatcher: When we come to investment strategy and risk tolerance, it’s so individual in nature. But of course, we live in a world economy and certainly geopolitical risks. Geez they affect us every day. If you look at the news headlines at all, there’s the war in Ukraine or there’s a terror attack in Israel and all these different conflicts these days. More than anything, I think that the investor’s friend is diversification, whether that is in the United States and/or around the world. Of course, it’s been so cited over the years that the price to earnings ratios of companies in Europe, even developing countries are so much lower than the United States. And part of that is because they tend to have less developed technology sectors with those really high multiples. But that means inherently they’re more value centered companies. And so there’s nothing wrong with having a good diversified portfolio that is global in nature. Obviously, there’s so many hotbeds happening around the world right now. Perhaps strategically steering away from those things is appropriate, but the diversification is what’s going to insulate you against whatever the next. I’ll say, world headline might be
Subscribe |
Earn. Live. Invest. |
TheStreet Pro |
#Investing #Stocks #WallStreet
source
