The main advantage of international investment is that foreign markets may be negatively correlated with United States and other foreign markets.

Question

Quizplus · Accepted Answer

Investing in international markets can provide diversification benefits as the performance of foreign markets may not be directly correlated with the US market or other foreign markets. This means that fluctuations in one market may not necessarily impact the returns from another market, potentially reducing overall portfolio risk. However, it's important to note that international investments also come with their own unique risks and challenges.

The Main Advantage of International Investment Is That Foreign Markets