global diversification

Let’s Tell a Story: Why Go Global When You Invest?

Global Diversification

Doing Better With Global Diversification

In two previous posts, here and here, we shared a pair of Dimensional Fund Advisor videos based on historical U.S. market returns data. If we really want to share this tale of evidence-based investing in living color, we’ve got to go global. While global returns data doesn’t go back as far – 1973 vs. 1926 for U.S. returns – it still has its own important story to relate, which you’ll find in today’s video, “Doing Better with Global Diversification.”

As the title suggests, a globally diversified mix of stock investments (U.S. and foreign companies; large and small companies; etc.), with a focus on stocks with higher expected returns (small, value, profitable), has delivered significantly higher end returns compared to the S&P 500 (an index of 500 large U.S. companies) over the same timeframe with a similar level of volatility.

Need some help figuring out an appropriate, globally diversified stock/bond mix for you and your long-term financial goals? Check out some of our past posts on diversification, and/or we’d be happy to continue the conversation with you in person.

Click on the image below to start the video.

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Sheri Iannetta Cupo, CFP®, Founding Partner (Retired) & Director
[email protected]

SAGEbroadview Wealth Management is a Fee Only firm offering ongoing financial planning and portfolio management, with tax planning woven carefully throughout our services. We work virtually across the country, with offices in Farmington, CT, Morristown, NJ, and Burlington, MA.