| WEEKLY ROUNDUP As Volatility Flares Up Again, Strengthen Your Portfolio VIEW IN BROWSER Hello, Reader. Last month, I posed a challenge… Adjust your investing habit and look beyond U.S. markets. Today, I’d like to check in. Let’s start with a brief tour of the home front. Navigating our frenetic stock market during the several weeks has not been an easy task. On one hand, the market is lavishing gains on select companies, but also swiftly and severely punishing others. It feels a bit like living with a pet lion. Sure, it can be cuddly and docile, but it can also maul you… even when it’s just playing, and especially if you scratch its tummy. Precious metals, base metals, energy, and a select “AI-Applier” companies have remained on the lion’s good side. But the lion extended a paw and took a swipe at software stocks during the recent “SaaSpocolypse,” and the sector is still nursing its wounds. To be clear, I’m by no means bearish on the United States. I think we’re still the ground zero of innovation and capitalistic dynamism. But that doesn’t mean there aren’t other opportunities in other countries… especially when so many foreign stocks are sporting valuations that are substantially below their U.S. counterparts. When I first posed the challenge to look overseas, I mentioned that monitoring other countries’ behaviors and what they’re doing with their capital allows you to expand your opportunistic reach. Right now, global markets are under pressure due to higher geopolitical risk following this weekend’s events between the United States and Iran. That means we might see an increase in volatility for U.S. stocks in the near term, especially in broad market indices. Foreign markets may see the same fate, as global investors move to become more risk averse. However, there is still a case to be made for the benefits of diversification. As I stated in my initial challenge: Over the span of a full market cycle, a dose of international exposure can provide a helpful diversification to your portfolio, while also growing your wealth. Spreading investments internationally reduces reliance on the U.S. alone and can smooth overall returns over time. And some markets outside the U.S. may offer cheaper valuations. Long-term investors – especially those focused on diversification – often benefit from foreign stocks over time, even through geopolitical turbulence. One of the easiest ways to diversify into foreign stocks in uncertain times is by investing in an Exchange-Traded Fund (ETF) that holds a basket of foreign stocks. ETFs like these sometimes focus narrowly on a specific country, like the iShares MSCI Brazil ETF (EWZ). Others paint with a broader brush. The iShares MSCI Eurozone ETF (EZU), for example, holds a portfolio of stocks from across Europe. ETFs give you diversified exposure across countries and sectors without betting on one region or stock. It’s instant diversification at a lower cost. At Fry’s Investment Report, I have recommended foreign ETFs like EWZ that are currently capturing double-digit gains and outpacing the S&P 500 by a wide margin. While that benchmark U.S. index is hovering around break-even for the year-to-date, EWZ has soared more than 20%. To learn more about my diversification strategy at Fry’s Investment Report, click here. Now, let’s take a look back at what we covered here at Smart Money. Then, I’ll share what you can expect next. | 
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