Shying Away From International Markets

In general, the portfolios that we create and manage a Generations Wealth Planning currently have less exposure to international markets than they have over the years. This is a significant longterm strategy move to reduce international stock holdings, especially in emerging market countries. For US investors, there have always been additional risks to investing in foreign stocks and bonds. Some of these risks include currency risk, accounting accuracy risk, and a higher degree of political risk. Also, these economies are not as diversified and mature. At this point, the risks are even higher than usual, and that's why we are shying away from most international markets.

As the US pulls back from its leadership role in the world, global trade will probably become more challenging for many of these countries. We are already seeing signs of stress around the world, especially in South America and North Africa. Don't be surprised to see more pockets of instability in the global markets. The US Stock and Bond markets appear best positioned to thrive. It also appears that the US dollar will maintain its status as the world's reserve currency, especially in light of slow growth in Europe and Japan, and slowing growth in China. We appreciate your confidence in us. If you have any comments or questions, please feel free to let us know.

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