Financially Empowering Women

Today’s show is focused on international investing. While many investors have been shying away from investing in Europe and Emerging Markets, a well-diversified portfolio will have international investments that go beyond today’s news.  Our guest today is Bill Chisholm from Thornburg Investment Management who helps us understand why international investments are important.  Over the past 10 years, international investments have outperformed the US market, as measured by the S&P 500, 7 out of 10 times International equities represent more than half of the world’s market capitalization.  That has changed over the years.  When we look at performance, the US market, international developed markets and the international emerging markets, all have very different patterns of return.  In statistical jargon, they are all weakly correlated, so by including them together in a portfolio, an investor can improve their dollar return over the long-run by smoothing out volatility.  Most people don’t realize that volatili