When it comes to investing, many people think that simply spreading their money across a few different companies is enough for diversification. However, true diversification is more nuanced. Recent global economic and geopolitical challenges have raised important questions about how much international exposure investors should have in their portfolios.
While U.S. stocks are influenced mainly by domestic factors, international stocks tap into diverse economic trends across different regions that can enhance returns and mitigate risks. Below, I have highlighted three global stocks, namely, SAP SE (SAP), AstraZeneca PLC (AZN), and Alibaba Group Holding Limited (BABA), that provide exposure to international equities for portfolio diversification by offering opportunities in expanding economies and emerging markets.
