“We feel that there is a place for international allocations in portfolios.” – 01:58
Salvatore Esposito, Head of ETF Products at Zacks Investment Management, joins Remy Blaire at the New York Stock Exchange to discuss the intricacies of international investing, particularly in the context of U.S. investors who often focus primarily on domestic markets.
Salvatore begins by breaking down the common tendency among U.S. investors to overlook international markets, especially given the dominance of U.S. stocks in global indexes. Salvatore emphasizes the importance of excluding U.S. stocks from portfolios to correct imbalances and highlights the unique risks associated with international investing, such as currency fluctuations, political instability, and geographic risks.
Salvatore notes the mixed trading patterns in major U.S. stock averages and the recent pullback in big tech. He stresses the significance of focusing on individual companies rather than just indices when considering investments in international developed markets. With Zacks Investment Management’s long history in research, Salvatore explains their approach to identifying quality companies with durable earnings and consistent earnings estimate revisions.