On average, how much of my stock portfolio should be in international stocks? | Financial Questions
Russ Thornton Level 12
You’re likely to get several different perspectives on this, Ian, but I believe that international stocks provide diversification benefits versus domestic stocks to a point, but they also introduce currency risk. And a stock’s return has no dependence on whether the company is headquartered in the US or abroad. As a result, I recommend approximately 15% of your total stock portfolio be allocated to diversified international stocks.
For more on this topic and the reasoning behind my approach, I’d encourage you to read this article: http://www.financeware.com/home_page.aspx?showsnippet=04.11.12.wem