RT Journal Article
SR Electronic
T1 Time to Stay Home? Global Diversification during
the Past 25 Years
JF The Journal of Wealth Management
FD Institutional Investor Journals
SP 37
OP 45
DO 10.3905/jwm.2017.20.1.037
VO 20
IS 1
A1 Stephen E. Christophe
YR 2017
UL https://pm-research.com/content/20/1/37.abstract
AB Over the past 25 years, as financial markets have become increasingly integrated, the role of foreign equities in a well-diversified portfolio has become increasingly uncertain. We present evidence that a globally diversified portfolio underperforms, on average, a U.S.-only allocation. Investors should not be overly optimistic about the potential benefits of international portfolio diversification.TOPICS: Portfolio theory, portfolio construction, global, performance measurement