The year has barely started and you are thinking of investing abroad? According to FactSet data, the US stocks that could occupy a space in your portfolio are:
- Tesla is the best performing stock listed on the S&P 500 right now, up 69%
- Next up are the roles of streamer Warner Bros. Discovery, up 63%
- In addition to biotech company Catalent up 59%
- The orthodontic company Align Technology, with a valuation of (50%
- And yet the cruise company Royal Caribbean with an increase of (48%), according to data from FactSet.
Even though the survey has distinct sectors, each of these companies were among the worst performing stocks of 2022, each losing 35% or more in the last year. Which shows how the financial market lives on oscillations and knowing how to interpret opportunities makes a difference.
Other stocks have even performed remarkably in recent times:
- Paramount (40%)
- Disney (21%)
- Nvidia (46%)
- Meta (44%)
- Norwegian Cruise Line (44%)
- Caesars Entertainment (27%)
Why invest in US stocks?
To begin with, it is necessary to understand the reasons that may lead to investment in assets abroad. The first point is related to the possibility of diversifying your portfolio. This helps in risk dilution.
After all, the eventual fall of an asset (or market) may be mitigated by the stability or rise of another. For example, imagine that Brazil is going through an economic or political crisis, and the shares of the Brazilian stock market are devalued.
If your portfolio is made up only of national assets, your investment portfolio will likely experience declines. However, if you also own US stocks — and the US economy is stable or buoyant — you can balance the result.
In this situation, any loss may be reduced or overcome with the appreciation of the securities in the foreign market. Finally, by diversifying your portfolio with US market alternatives, your capital is exposed to the US currency — the dollar. This provides protection against the devaluation of the real (currency hedge).
How to invest in US stocks? Look here!
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