Alex Jamieson: Should Australians invest in international shares for better returns?
Announcement posted by Invigorate PR 22 May 2025
With rising economic uncertainty and market fluctuations at home, many Australians are asking whether they should be looking beyond the ASX for growth. According to respected financial advisor Alex Jamieson, founder of AJ Financial Planning, the answer is yes, but not without careful consideration.
"Investing in international markets can offer Australians broader exposure, diversification and access to industries that simply don't exist at scale here," Jamieson said.
"However, like any financial strategy, it needs to be aligned with your risk profile, goals and time horizon."
With the Australian market making up just a small fraction of the global economy, Jamieson believes investors who stay solely domestic are potentially limiting their opportunities for long-term returns.
The upside of going global
According to Jamieson, one of the strongest advantages of international investing is access to leading global companies and sectors, particularly in areas like technology, healthcare and green energy.
"Some of the world's biggest innovators and disruptors, companies like Apple, Microsoft, Tesla and Amazon, are not listed on the ASX. By investing internationally, Australians can take part in their growth and benefit from trends that are shaping the global economy," Jamieson said.
He also noted that geographical diversification can help reduce risk.
"Different markets perform differently at various stages of the economic cycle. Having international exposure means you're not overly reliant on Australia's economic performance alone," he added.
What to watch out for
Jamieson warns that investing overseas does come with its own set of challenges, including currency fluctuations, geopolitical risk and taxation issues that many DIY investors fail to fully consider.
"Currency movements can work for or against you. For example, if the Australian dollar strengthens significantly, it can erode gains from overseas shares. Investors also need to be aware of withholding taxes and reporting obligations, particularly in markets like the United States," he said.
He also cautions against overexposure to trending overseas stocks without understanding their fundamentals.
"Just because something is popular on social media or listed on a US exchange doesn't mean it's the right fit for your portfolio," he said.
Doing it yourself vs professional guidance
While there are now a growing number of platforms that allow Australians to invest in international shares directly, Jamieson notes that access does not equal expertise.
"Yes, the tools are there for people to manage their own overseas portfolios but knowing what is happening in international markets, assessing the risks and researching individual stocks or sectors takes time and more importantly, it takes context," he said.
"The best approach for most people is to speak with a financial advisor who understands both local and global markets and can build a strategy that works for your individual circumstances."
Smart strategies for international investing
Jamieson advises Australians to explore global exposure through professionally managed global funds, ETFs or targeted individual stocks, always based on solid research and long-term objectives.
"Start by determining what role international investments play in your broader strategy. Then use the right vehicle, whether it's through funds or shares, to gain access without taking unnecessary risks. And always seek advice if you're unsure," Jamieson said.
A broader horizon, done wisely
Ultimately, Jamieson believes international investing can be a powerful tool when used with discipline and insight.
"We live in a global economy. If your job, your lifestyle and your consumption are international, there's value in your investments reflecting that too but only if it fits within a thoughtful and well managed plan," he added.
About Alex Jamieson
Alex Jamieson is the founder of Melbourne-based advisory firm, AJ Financial Planning. With a firm belief in responsible investing, Alex crafts investment portfolios for clients that not only meet their financial objectives but are also sustainable and match their ethical values.
A highly respected financial advisor, Alex is considered one of the country's leading experts on all matters financial planning, investing and retirement.
