The stock market has rebounded completely from its April lows, recovering all previous losses. For investors who disregarded warnings about over-exposure to U.S. stocks, particularly with the dominance of a few tech stocks in the S&P 500, the recovery presents an opportunity to diversify into international equities and other asset classes.
David Schassler, VanEck’s head of multi-asset solutions, emphasized the importance of diversification, suggesting investments in international markets, real assets like gold, and even cryptocurrencies like Bitcoin.
Some investors have already heeded this advice, with significant inflows into international stock ETFs in 2025. Despite the historical focus on U.S. stocks for long-term investment, experts recommend diversifying into international and emerging markets to balance portfolios and mitigate risks associated with high U.S. stock valuations.
As the global trade sentiment improves, experts suggest considering investments in China, India, and other emerging markets to enhance international diversification plans. China’s robust economic stimulus and India’s impressive growth story make them attractive investment destinations for those looking to diversify their portfolios beyond U.S. stocks.