Thank you to all who were able to join us for the speaker luncheon by Vanguard. We hope that you picked up some interesting facts about investing in the international market.
Below are what we considered to be the key points, and as always we’ll gladly discuss any questions you might have on this (or any other) topic.
“Lost in Translation – even though we may not speak and understand international languages, it’s still important to be invested there”
- More diversification is better
- A little international investment can mean a lot – even a small international allocation can drastically reduce volatility
- Be sure to hedge international bond investments back to the U.S. dollar
- Making future return predictions using “consensus GDP” offers 0% predictability where valuations such as P/E do a much better job (*Comically, even rainfall shows a 6% predictability, and you wouldn’t use rainfall as a predictor, would you?!)
For more information about The Trust Company’s international investments, please contact your Relationship Manager.