Oddly, most U.S. investors have a significant portion of their investment portfolio in foreign stocks, but few have allocated a portion of their resources to international bonds. Traditionally, domestic investors have a home-country bias, and prefer U.S. Treasury bonds, municipal bonds, and U.S. company debt.
However, the weakening dollar and low yields on U.S. Treasury bonds have made the case for adding foreign-bond exposure to a fixed-income portfolio more persuasive.
Don’t Neglect International Bonds
Oddly, most U.S. investors have a significant portion of their investment portfolio in foreign stocks, but few have allocated a portion of their resources to international bonds. Traditionally, domestic investors have a home-country bias, and prefer U.S. Treasury bonds, municipal bonds, and U.S. company debt.
However, the weakening dollar and low yields on U.S. Treasury bonds have made the case for adding foreign-bond exposure to a fixed-income portfolio more persuasive.
For more information, click here.