Why it pays to invest in foreign stocks

Many investors feel safer investing at home than in foreign stocks – but as the wobbly pound shows, that safety can be an illusion.

Man changing money at a Bureau de change © Alamy

It's not just holidaymakers who suffer when the pound is weak
(Image credit: Man changing money at a Bureau de change © Alamy)

The UK stockmarket accounts for less than 5% of shares listed around the world, yet the London-listed stocks still dominate most British investors' portfolios. The typical wealth manager keeps around half their clients' equity holdings in the UK, while smaller investors are likely to show an even greater home bias.

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Cris Sholto Heaton

Cris Sholto Heaton is an investment analyst and writer who has been contributing to MoneyWeek since 2006 and was managing editor of the magazine between 2016 and 2018. He is especially interested in international investing, believing many investors still focus too much on their home markets and that it pays to take advantage of all the opportunities the world offers. He often writes about Asian equities, international income and global asset allocation.

Cris began his career in financial services consultancy at PwC and Lane Clark & Peacock, before an abrupt change of direction into oil, gas and energy at Petroleum Economist and Platts and subsequently into investment research and writing. In addition to his articles for MoneyWeek, he also works with a number of asset managers, consultancies and financial information providers.

He holds the Chartered Financial Analyst designation and the Investment Management Certificate, as well as degrees in finance and mathematics. He has also studied acting, film-making and photography, and strongly suspects that an awareness of what makes a compelling story is just as important for understanding markets as any amount of qualifications.