Diversify Your Portfolio With International Investments

Given how volatile the U.S. financial markets have been lately and how well international stocks have been performing, you may want to consider allocating some of your investments to international stocks. Here are some talking points to consider.

Whether you know it or not, you may already be invested in international stocks. For example, if you own stock in McDonald's, chances are you're indirectly invested, since Mickey D's has franchises all around the world and derive a significant portion of its revenue from outside the U.S.

If you want to make an investment in certain geographic regions, do plenty of research on the region's sociopolitical climate. Given all the political conflict in certain areas of the world, investing in some areas may be riskier than others. You don't want to pour your money into in an unstable economy or government, where terrorism or local warfare can drain your funds.

Finally, keep up on the goings-on around the world. Given the increased globalization in the world today, an event in one area of the world can affect the economy of a country on another continent. Surf the Internet to keep up on what's going on in Paris, Beijing or Mexico City. Remember: the more you educate yourself about global events, the better your chances of investing success.