Skip to main content
A Clear Direction
rss feedour twitterour facebook page linkdin
Financial Advisor Brisbane - AdviserScott Keefer - A Clear DirectionBuilding Investment PortfoliosPortfolio Management ServiceUpdated ContentContact Us - Brisbane Financial Planning
A Clear Direction Financial Planning logo

 Financial Happenings Blog 
Thursday, March 22 2007

International shares are an important part of all of our investment portfolios.

Why?  Because over the long term they have delivered very similar returns to Australian shares.  By investing in both Australian and international shares your portfolio still has the same expected return, however the 'ups and downs' of the portfolio should be smoothed out a little.  When Australian shares are performing poorly, international shares may be performing better and smooth the overall portfolio returns, and visa versa.

Currency changes are an important part of this investment process, and indeed why international share investments have generally performed poorly over the past 5 years.  During this time the Australian dollar has risen to its current level of above US 80 cents. 

All else being equal, you want to buy international assets with a strong Australian dollar, as it is now, and well them with a weaker Australian dollar - increasing your profits in Australian dollar terms.  So, even though there have been a number of weaker years of returns from the international shares, now is not the time to turn your back on that asset class given the strength of the Australian dollar.


Scott Francis 

Posted by: Scott Francis AT 06:01 pm   |  Permalink   |  Email
Scott Francis' articles in the Eureka Report 
Request for Information 
If you have questions, or would like more information, please go to our Contact page and leave your name and contact information.

Plan Well, Invest Well, Live Well! Financial advice providing a clear direction

A Clear Direction Financial Planning and Portfolio Management ABN 85 147 572 870

Level 19
10 Eagle Street
Brisbane QLD Australia
Ph: (07) 3303 0269

Authorised Representative (398444) and Credit Representative (403292) of FYG Planners Pty Ltd AFSL/ACL 224 543.

ASIC - Financial Advisers Register

All content of this website is copyright © A Clear Direction Financial Planning Pty Ltd, 2017

FYG Planners Pty Ltd & A Clear Direction Financial Planning Privacy Policy