Theoretically, diversifying is always good because it balances the gains from certain investments with losses from others. Whoever invests only in CDI-linked applications obtains high returns while interest rates are above inflation, but when the Selic rate falls, returns decrease. Other assets, such as stocks, may have greater appreciation, but fluctuate much more than fixed income, making it necessary to find an appropriate weight for each type of investment.
The main point of diversification is to reduce risk, more than to increase returns. The increase in long-term returns ends up being a consequence of risk reduction, not the primary objective.
Specifically about investing abroad, the article mentions two main aspects. First, that currency variation has cycles. Citing the most recent period, between 2023 and 2024 the dollar rose, which indicates that there are more and less favorable moments for this type of investment.
The text is an explanatory response about personal finance, addressing the basic principles of investment diversification in both the domestic and international markets, without presenting conclusive data on what would be the best strategy.
