The market just gave investors a gift. Here’s how not to blow it
The stock market has recovered from its April lows, with all losses now regained. For investors heavily invested in U.S. stocks, particularly tech stocks in the S&P 500, diversifying into international equities and other asset classes is now a crucial opportunity. David Schassler of VanEck advises diversifying into international markets, real assets like gold, and even bitcoin.
While some investors have already embraced international diversification, more are encouraged to do so as U.S. stocks continue to surge. Experts suggest balancing portfolios with international and emerging markets, especially as U.S. stock valuations remain high. Despite the temporary trade truce between the U.S. and China, recession risks persist, making diversification even more critical.
Investing in quality stock funds, like those focusing on growth and value beyond the S&P 500, can help mitigate concentration risk in U.S. portfolios. China and India are highlighted as compelling destinations for international investment, with China showing strong economic stimulus and India emerging as a growth powerhouse. ETFs like KWEB offer exposure to these markets, providing investors with diversified opportunities for growth.
Investors looking at India have a variety of options to consider. One popular choice is the iShares MSCI India ETF (INDA), along with Van Eck’s Digital India ETF (DGIN).
According to Schassler, the appeal of investing in India lies in its structural growth story. With a large tech-savvy population, high levels of education, and government support for the economy, all the elements are in place for a promising growth trajectory.
