The Stacking Benjamins Show cover image

The Stacking Benjamins Show

Is It Time To Dump International Stocks? (SB1647)

Feb 21, 2025
In this discussion, financial experts Paula Pant, host of the Afford Anything podcast, and Jesse Cramer, from Personal Finance for Long-Term Investors, tackle the debate on international stocks and their recent underperformance. They weigh the importance of diversification and historical performance, while exploring alternative investment classes like real estate and collectibles. The conversation also dives into quirky currency trivia, including the mysteries of a fictional $3 coin, all wrapped in humor and camaraderie.
59:26

Podcast summary created with Snipd AI

Quick takeaways

  • Despite recent underperformance, international stocks still play a crucial role in diversification and should not be hastily eliminated from portfolios.
  • The podcast highlights the complexities of investing in different asset classes, emphasizing the risks associated with non-traditional investments like collectibles and private equity.

Deep dives

The Dilemma of International Investing

Over the past decade, international funds have underperformed relative to U.S. returns, leading to discussions on whether to eliminate them from investment portfolios. The conversation emphasizes the importance of evaluating funds based not only on recent performance but also on their role in providing diversification. Investors like Nick Majuli acknowledge that international funds may yield lower long-term returns, yet they still hold potential value when considered as part of a diversified portfolio. A broad approach, encompassing different asset classes and geographical locations, is crucial for mitigating risks during market fluctuations.

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