Not A Stock Wizard? Avoid These Investing Mistakes, Part 5
Over there . . . I think. Looking to diversify your portfolio into overseas markets? Many financial professionals agree that investors can improve the long-term performance potential of their portfolios by moving between 10 percent and 30 percent of their money into foreign investments. But is your fund truly invested across the water? If you're considering a global fund, you may be missing the boat. International funds hold only foreign securities, while global funds invest in companies in the United States and overseas. So if you want to diversify into foreign markets alone, invest in an international fund. You should also know foreign investing is subject to certain risks, such as currency fluctuations and social, economic and political changes, which may result in greater share price volatility.
I want my CNBC. What's the first thing you do in the morning? If you switch on CNBC, get your fix of The Wall Street Journal or check your stocks on the Internet before you pour your coffee, you might be obsessing over the stock market. It's true such diligence could lead to profits, but it could also lead to needless worry, panic and way too much trading. It's important to pay attention, but it's bad to be too anxious.
See our tips on Tuesday, December 26 through Monday, January 1 for parts 1 through 4 of this article, and Wednesday, January 3 and Thursday, January 4 for parts 6 and 7 of this article.