A world of opportunity A world of opportunity http://www.federatedinvestors.com/static/images/fhi/fed-hermes-logo-amp.png http://www.federatedinvestors.com/daf\images\insights\infographic\earth-from-space-small.jpg March 29 2021 March 18 2021

A world of opportunity

5 reasons to invest internationally.

Published March 18 2021
My Content
Infographic published March 18, 2021. Title: A world of opportunity A world of opportunity. 5 reasons to invest internationally. 78% of global Gross Domestic Product. Broader market exposure. While the United States is 57 percent of the MSCI All Country World Index, it’s just 21.6 percent global Gross Domestic Product*. Favorable valuations. Many international stocks are trading at substantial discounts to United States stocks**. Enhanced diversification. A more fragmented world economy has reduced the correlation between United States and international equity markets. Potential to benefit more from any rotation to value. Relative to the United States, the rest of the world is overweight with cyclical value stocks in sectors such as Financials, Materials, Industrials and Consumer Discretionary/Staples. Accelerating growth opportunities in emerging markets. Fueled by: favorable demographics, innovation leadership, China’s end of lockdown and prospects for a weakening dollar amid rising United States Treasury issuance. *As of 1/2021, World Bank. **Based on traditional valuation metrics. Information sources for this graphic included World Bank, 2019. International investing involves special risks including currency risk, increased volatility, political risks, and differences in auditing and other financial standards. Prices of emerging-market and frontier-market securities can be significantly more volatile than the prices of securities in developed countries, and currency risk and political risks are accentuated in emerging markets. Diversification does not assure a profit nor protect against loss. Views are as of March 17, 2021 and are subject to change based on market conditions and other factors. These views should not be construed as a recommendation for any specific security or sector. Past performance is no guarantee of future results. The MSCI All Country World Index captures large- and mid-cap representation across 23 developed markets countries and 23 emerging markets countries. The index is unmanaged and covers approximately 85 percent of the global investable equity opportunity set.