Many advisers believe their clients should always have 10% of their assets invested internationally. Was this percentage divinely derived, or is there a reason behind it? And how do they determine in which markets to invest? If they invest your money in Botswana, Brazil and Belgium, can they explain why those countries are the right ones? And that you are investing the appropriate amount of money in each? Or are all international markets seen as equally poised to perform?
And what if the US looks prepared to outperform any other market? Would you still want 10% of your money invested elsewhere?
Having a global investment strategy is not always about investing globally. But it is always about understanding the correlation between important global factors and how investments are primed to perform. Well-thought rationale for when, where and why to invest in anything – global or domestic – is one of the many things you can count on at Cadinha & Company.
We’ll invest (almost) anywhere, but only if we can prove to ourselves it’s worth the risk.