This week, I’m talking about opportunities and risks in today’s stock market.

Today, I’m talking about a couple of categories of investments that like dividend-growing stocks which I discussed yesterday, have largely not participated in the stock market recovery so far and thus represent good buying opportunities right now. Fundamentally, these areas look attractive because they are cheap or on sale.

The first area is international stocks. If you look at the 3-year cumulative performance of the MSCI EAFE index, which represents the performance of large and mid-cap stocks across 21 developed markets around the world, that index is only up 6% over the last 3 years. Compare that with the S&P 500 here in the US which is up 42% and the tech-heavy Nasdaq which is up 74% over that same time. 

International stocks have been unloved ever since the last recession in 2008 and 2009, and have really struggled to regain the lost ground from over 12 years ago...then when Covid hit, international stocks got slammed harder than US companies, so they represent a good entry point and a good buying opportunity, since there are still plenty of reasons to be positive about investing internationally over the long-run.

The other area of opportunity is small-cap stocks. These are smaller companies that similar to international stocks have been hit hard in 2020. Now represents a good entry point if you’re looking to reposition your portfolio and take advantage of cheaper valuations. 

That’s it for today’s tip, but before you go I have a special treat for you because I love my listeners and I appreciate you taking the time to listen to me babble on in the mornings…

You may be listening this week and think - I have no idea how much in dividend stocks, or small cap or international I have in my portfolio and how much I should have. If you would like an expert to look under the hood of your portfolio to see how much you have invested in big tech, small cap, international stocks - to shine the spotlight on gaps or areas of risk in your portfolio -  just send me an email at [email protected]. I’ll send you instructions for sending your portfolio investments to me securely, and I’ll run a portfolio analysis for you - for free. It’s secure and confidential with no strings attached. Just email me at [email protected] for your free portfolio analysis. 

Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip.

---------

>>> Subscribe on iTunes: https://apple.co/2DI2LSP

>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs

>>> Check out our blog: https://truenorthretirementadvisors.com/blog/

----------

Tags: retirement, investing, money, finance, finances, financial planning, retirement planning, saving money, personal finance, wealth management, money tips, fee only financial advisor, financial planner, financial podcast, retirement podcast, financial independence podcast