In the world we can find some 40,000 publicly traded companies of which almost 80 percent are stationed overseas, and this is a good indication that there are interesting investment potentials outside the borders of the United States.
Looked at this in a different way, over 50 percent of the global $38 trillion overall market capitalization is owned by the worldwide arena, and American mutual funds keep nearly $500 billion in international investments.
With all these potential investments outside the U.S., international investments have become an excellent vehicle to diversify an equity portfolio. A number of people claim that there’s definitely a growing connection in performance between international and domestic markets.
But while international markets usually tend to react in the same way to news or developments taking place around the world, after a while, global and domestic markets have a tendency to behave in different ways, and this helps to keep the balance in a diversified portfolio.
These days, you even have better options and monitor new investing developments thanks to many (investor relations) IR apps.