investing

Investing: Avoid the eurozone?

How should individual investors view the European debt crisis as it pertains to building a properly diversified portfolio?

Professor's Perspective
Professor's Perspective

Financial markets are well aware of the problems in Europe. Thus, security prices reflect these risks. Unless you think you are better at predicting Europe's future than other skilled professionals, you should invest in European securities, too. If -- I repeat, if -- they can resolve the conflicts, then returns should be strong.

If you prefer to avoid or limit exposure to Europe, you can attain international diversification through Pacific (e.g., Japan and Australia) and emerging market (e.g., Brazil, China and India) stocks and still have a prudent portfolio.

We would like to thank William Reichenstein, CFA, Ph.D., the Pat and Thomas R. Powers Chair in Investment Management at Baylor University, for offering his knowledge. Questions for this interview were contributed by Greg McBride, CFA, Bankrate.com's senior financial analyst.

William Reichenstein
Professor's Profile:
Title:
School:

William Reichenstein, CFA, Ph.D.

Pat and Thomas R. Powers Chair in Investment Management
Baylor University

 

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
advertisement

CDs and Investment

Can heirs cash an old trust?

Dear Dr. Don, The youngest of 6 children, I am 48 years old. My father joined the Navy at 22. In Italy, he met his bride and my mother, and returned to the U.S. to raise our family. In 1959, he bought a trust certificate... Read more

advertisement

Blog

Stephen Pounds

Transatlantic trade deal could suffer Brexit fallout

Brexit is casting a shadow over a trade pact the U.S. and EU have been negotiating for 3 years.  ... Read more


Connect with us