5 Investing Truths Every Investor Must Know - #2: Global Diversification is Important

We have more information today than at any other time in history. And with more information, we can make better decisions, right? Wrong!

Now more than ever, it is important for us to get rid of the clutter to focus on what is most true and important. Such is true both with life and with investing.

This is the second of 5 short articles outlining core investing truths that have stood the test of time. If you remember these truths, you will likely make better investment decisions. Thank you for reading!

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Truth #2: Global Diversification is Important!?

“Home country bias” often results in portfolios that are too heavily weighted in the US.? Adding international and emerging markets equities and fixed income will enhance diversification and will have the potential to lower risk and lead to better results.

For many years now, investments in the United States have generally performed better than investments overseas. While this has been true over the last 5-10 years, will this outperformance continue over the next 5-10 years? Only time will tell.

Imagine you are a Japanese investor who has only invested in your home country for the last 20 years. You largely have not benefited from the global growth we have seen over the last two decades. While we expect the US market to do well over the long run, you may be taking too much risk, or you may be missing opportunities, by keeping all of your investments in domestic companies.

You deserve an advisor who takes the time to get to know you and your family.?You deserve an advisor who makes decisions with you, not for you.?To schedule an introductory 15-minute call or virtual meeting,?click here.?To request a fee analysis of your existing portfolio, please?click here.