Invest internationally to benefit from capitalist growth


CLARKONOMICS: My show is dedicated to saving more and spending less, but right now, people are afraid to spend anything at all!

One particular concern is that we are afraid to invest. I wanted to talk about that in different terms than I have today as I’ve heard your concerns on this special edition of The Clark Howard Show.

I believe this is a great time for you to look at your retirement savings portfolio and I want to get you diversified in a way that’s wider than you may have thought about.

As you may know, the real growth of capitalist enterprise is overseas. I’ve seen your Facebook questions about whether or not you should buy foreign currency as a hedge against the weak dollar and I want to suggest a different spin.

I’d love to see you buy emerging market funds and put your money to work outside the U.S. in that way. It will let you diversify your portfolio and diversify currency risk as well. Buying funds that hold shares of foreign enterprises is the smart way to hedge against the U.S. dollar.

And on that note, yes, there have been declines in the dollar, but it isn’t done yet. The reality is we defeated communism and provided a beacon of freedom for the world. That act alone unleashed an unprecedented wave of economic growth and activity around the globe.

The growth around the world runs into problems from time to time, just as we do here at home. But I want you to step back and keep perspective. Money that’s invested in risk-type choices is designed to reward you well down the road, not tomorrow or next year.

So don’t fear the short term. Remember the target, remember the goal and make international part of your plan. See my investment guide below for my favorite international fund picks.

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