The Advantages of Global Investing
Overview
U.S. stocks have global exposure but do not provide global diversification. In investing, being exposed to too much of the same thing could be dangerous, especially when that market or a segment of it underperforms. A globally diversified equity portfolio may not only protect investors from the concentration risks due to home bias, but could also open the doors for them to take advantage of many lucrative opportunities abroad. And if you go global, go active.