{"id":1001,"date":"2023-08-24T06:00:17","date_gmt":"2023-08-24T10:00:17","guid":{"rendered":"https:\/\/cornerstoneportfolioresearch.com\/?p=1001"},"modified":"2023-10-25T11:53:14","modified_gmt":"2023-10-25T15:53:14","slug":"a-comprehensive-guide-to-tactical-allocation-between-domestic-and-international-stocks","status":"publish","type":"post","link":"https:\/\/cornerstoneportfolioresearch.com\/asset-allocation\/a-comprehensive-guide-to-tactical-allocation-between-domestic-and-international-stocks\/","title":{"rendered":"A Comprehensive Guide to Tactical Allocation between Domestic and International Stocks"},"content":{"rendered":"
For RIAs and IARs, navigating the complex investing world can be challenging, especially when facing where to put your clients\u2019 assets. One of the key decisions you and your clients will make is allocating the assets between domestic and international stocks.\u00a0<\/span><\/p>\n This process, known as tactical asset allocation, forms the backbone of any active investment process. In this blog, we will explore the importance of tactical allocation between domestic and international stocks and the role of geographic diversification.<\/span><\/p>\n <\/p>\n <\/p>\n Tactical asset allocation involves actively managing an investment portfolio to capitalize on market inefficiencies and economic opportunities. It is a dynamic strategy that involves adjusting the allocation of assets in a portfolio based on short-term market outlooks.<\/span><\/p>\n The concept of tactical allocation between domestic and international stocks centers on optimizing returns and managing risk by investing your clients\u2019 assets across different geographical markets. These markets often behave differently due to economic, political, and social variations.\u00a0<\/span><\/p>\n For instance, when one market performs poorly, another may thrive. By tactically allocating your clients\u2019 assets, you can invest in countries and companies that are more stable with increased potential for producing premium returns.\u00a0<\/span><\/p>\n Geographic diversification plays a pivotal role in <\/span>tactical asset allocation<\/a><\/strong>.<\/strong> It\u2019s all about putting your eggs in multiple baskets to improve returns and minimize your clients\u2019 risk of large losses. By investing in both domestic and international stocks, you spread your risk across multiple markets and economies. This strategy can reduce risk and open the door to additional investment opportunities.\u00a0<\/span><\/p>\n Here’s how geographic diversification can impact your clients’ portfolios:<\/span><\/p>\n Allocating assets tactically requires a keen understanding of global markets and a responsive approach to making investment decisions. Consequently, we constantly monitor global market trends and economic indicators that impact particular countries. Following are a few processes you can use to make tactical asset allocation decisions for your clients:\u00a0<\/span><\/p>\n Cornerstone Insights: Some companies are headquartered in the U.S. and derive most of their revenues from outside the U.S. <\/span><\/i>Some companies are headquartered outside the U.S. and derive most of their earnings from inside the U.S.\u00a0<\/span><\/p>\n The most <\/span>significant benefit of an OCIO<\/a><\/strong> is access to its expertise and time. This can be particularly beneficial for smaller RIAs and IARs who need help to employ a full-time, in-house CIO with the expertise to deliver competitive rates of return.<\/span><\/p>\n The team at Cornerstone Portfolio Research provides highly customized investment research and portfolio management services to independent RIAs and IARs.\u00a0 <\/span>We invite you to connect with us<\/a><\/strong> to learn more about our services.\u00a0<\/span><\/p>\nRead our newest Quick Guide, \u201cAn RIA\u2019s Definitive Guide to Tactical Asset Allocation.\u201d<\/i><\/b><\/a><\/h3>\n
Tactical Allocation between Domestic and International Stocks<\/b><\/h2>\n
The Role of Geographic Diversification in Tactical Asset Allocation<\/b><\/h2>\n
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How to Allocate Assets Tactically between Domestic and International Stocks<\/b><\/h2>\n
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How Can RIAs And IARs Benefit From Using An OCIO?<\/b><\/h2>\n
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