Amid rising inflation concerns in the United States, it could be wise to invest in quality international stocks to dodge volatility in the domestic stock market by diversifying one’s portfolio. We think low-priced foreign stocks Industrial and Commercial Bank of China (IDCBY (OTC:IDCBY)) and Compagnie Financière Richemont (CFRUY) could be solid additions to one’s portfolio given their fundamental strength. Let’s discuss.International stocks are a solid investment option when the domestic market is volatile because they help diversify a portfolio given that their performance is influenced by different external or macroeconomic factors than domestic stocks. They also can present a wide range of opportunities that are unavailable with domestic stocks.
Because the Federal Reserve is expected to raise interest rates sooner than expected to control inflation, global stocks are experiencing a pullback.
However, there are other country-specific factors that could drive the performance of many international stocks in the near term. So, we think it could be wise to diversify one’s portfolio by adding a few high-quality international stocks. Reasonably priced international stocks Industrial and Commercial Bank of China Limited (IDCBY) and Compagnie Financière Richemont SA (CFRUY) could be solid bets in this regard, considering their fundamental strength.