|Probably not. Historically, although past performance is not an indication of future results, stocks have returned more than bonds or any other type of asset class. So, if you are seeking long-term growth, you will want to consider high-quality stocks. On the other hand, if you want current income, you’ll want to purchase investment-grade bonds.
Ultimately, by owning a diversified mix of stocks, bonds and other securities, you can go a long way toward meeting your goals for both growth and income. But it always helps to know what to anticipate from all your investments.
Look Beyond U.S. Borders for Opportunities
On any given day, you could talk on a Samsung cell phone, watch a Sony television, or eat a Nestle Crunch Bar. What do all these products have in common? They’re manufactured by companies based outside the United States. Many of the goods and services you use are internationally based which means you have investment opportunities around the world.
And many of these opportunities are good ones, because you can find some high-quality stocks among foreign companies. Furthermore, international investing can help you diversify your portfolio.
Keep in mind, though, that international investing carries some special risks, such as political or economic instability, along with changes in foreign currencies and interest rates. As a result, it’s a good idea to limit your foreign holdings to no more than 10 percent to 20 percent of your portfolio’s total value.
Start thinking soon about broadening your investment horizons.
Contact Wendell at Edward Jones www.edwardjones.com.