Investors have compelling reasons to invest in international equities, says Denny Baish, senior investment analyst for Fort Pitt Capital Group. For starters, the U. S. share of the global equity market is now down to about 46%, and slightly less than half (46%) of the revenues of S&P 500 companies are now generated abroad, Baish says. What’s more, there is fast-growing demand for consumer goods from the rising middle class in China, India and other emerging markets, he adds: “We take items like food and clothing and so-called ‘luxury’ goods like watches, purses and handbags for granted, but to people just entering the middle class, they are a big deal.” Slightly less than one-third of Fort Pitt’s equity allocation is now in international funds, Baish says. But for all the opportunities, there are a number of issues advisors should make sure they understand before putting a client in an international stock or fund. They include:

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