Retirement Investing Mistake: Ignoring the Benefits of Global Stocks

Title screen appears, “Common Retirement Investment Mistakes” underneath it a subtitle “Mistake #5: Ignoring International Stocks”

A woman appears on the screen with a TV screen next to her, the woman is wearing a Navy Suit, she is identified as Jessica Smith, Client Services Vice President.

Jessica Smith begins to speak. In the screen TV a white screen appears with a title, "Home Country Bias: the tendency to invest in Companies Headquartered in your country.”

[music]

Jessica Smith: Many investors ignore international stocks and invest only in US companies. Some investors assume that they can diversify by investing in US based multinational companies, while others may have a home country bias and believe US. Companies make for better investments. Fisher Investments believes invest in globally in both US and international stocks is advantageous.

On the TV screen next to Jessica a chart appears, the chart is titled “US vs. Non-US stock Market Leadership” The chart is showing US returns Minus Non-US Returns over the years 1970to 2015.

Jessica Smith: Why? Because US and non-US stocks perform differently. Investing in both US and non-US stocks can create a less volatile portfolio. As this graph shows. Sometimes US stocks perform better, and sometimes non-US stocks perform better. But any outperformance is temporary, and US and non-US stocks tend to change leadership positions. Often, by owning both US and non-US stocks, you can create a diverse portfolio and potentially experience less volatility, smoothing out your long-term returns.

In the TV screen next to Jessica, a title appears "Seven Common Retirement Investing Mistakes” Underneath it seven points that are:

1. Improperly Diversifying
2. Trying to time market
3. Misunderstanding the Risk-Reward Trade-off
4. Ignoring Inflation
5. Ignoring International Stocks
6. Overstimating How far Your Social Security
7. Paying Excessive Fees

Jessica Smith: Thanks for watching. You can check out our other six common retirement investing mistakes to learn more about what to avoid as you plan for your financial future.

A white screen appears, with the title "Fisher Investments” underneath it is the YouTube Subscribe Button.

Jessica Smith: If you enjoyed this video, you can click the subscribe button and ring the bell to be notified when we publish new content. Thanks for watching our channel.

Jessica Smith finished talking, and a series of disclosures appears on screen: “Investing in Securities involves a risk of loss. Past performance is never a guarantee of future returns. Investing in foreign stock markets involves additional risks, such as the risk of currency fluctuations. The foregoing constitutes the general views of Fisher Investments and should not be regarded as personalized investment advice or a reflection of the performance of fisher investment or its clients. Nothing herein is intended to be a recommendation or a forecast of market conditions. Rather it is intended to illustrate a point. Current and future markets may differ significantly from those illustrated here. Not all past forecasts were, nor future forecasts may be, as accurate as those predicted herein.

[music]