TAG: Investor Behavior
In our view, the primary role of bonds is to provide safety and capital preservation when they are needed most—during the inevitable periods of stock market distress. Despite legitimate and growing concern over our country’s financial condition, recent examples continue to illustrate the role U.S. Treasuries play as the ballast of a well-diversified portfolio.
Non-U.S. stocks currently account for more than half the global market. Despite this fact, investors still commit relatively small portions of their portfolios to investments abroad. In this essay we discuss the appeal to investing overseas and address the question of how much exposure is needed to reap the benefits of international diversification.