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The Importance of Global Diversification

The Importance of Global Diversification

October 01, 2021
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We know that the proper mix of assets reduces investment risk and volatility, but did you know one of the best ways to achieve this is through global diversification?

Every year a different country has the largest stock market returns, in the same year there are also countries that have low or negative stock market returns, and it’s difficult to predict which countries will outperform or under-perform. An effective way to even out these differing returns is to own both U.S. stocks as well as European, Asia/Pacific, and Emerging Market stocks. This gives us diversification in different parts of the globe as well as in more economically developed and less developed countries.

Whenever you think investing, think globally!

Photograph by Ben White

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