The Fanmags might be finding it tough to impress hard-to-please Wall Street but their recent knockout results underline in thick red ink the value and wisdom of investing beyond the borders of the UK.
Amazon’s net income more than tripled to $8.1bn, while Apple revenues were up 54 per cent at $89.6bn. Microsoft’s numbers were impressive, too, and even if it hasn’t yet clambered onto the $2 trillion market cap podium alongside Apple, the combined market cap of those two companies’ alone is worth more than the total value of the All-Share.
There are, of course, domestic treasures to be found on the London market, attractively priced ones at that, and takeover targets too, as John Baron discusses in his column, but it would be silly for any investor to ignore the diversification and opportunity benefits of adding international flavours to their portfolio. For one thing it helps to make up for some of the inadequacies of the domestic market such as the dominance of out-of-favour sectors, the ongoing Brexit discount and the resurfacing of old worries about weaknesses in the UK economy.