It would make sense for foreign markets to provide
less diversification benefit than they used to, given that the world economy, even as it becomes less U.S. - centric, is becoming more interconnected.
Not exact matches
Some academics would further argue that these private investments are
less correlated with the stock market than their public peers, and therefore these private investments have portfolio
diversification benefits.
Investment in The Fund is suited to individuals, families and their trusts and superannuation funds who may be
less confident about the market's direction and those who value the
diversification benefits of returns that are largely uncorrelated with movements in the broader equity market.
All of the problems of our world are there, usually in a form that is
less severe than we experience because of the
benefit of liquid secondary markets and vehicles for
diversification.
Further
diversification benefits can be gained by investing in foreign securities because they tend to be
less closely correlated with domestic investments.
ETFs are typically
less expensive than mutual funds in terms of fees, yet offer similar
benefits in respect to
diversification.
And if stock types become substantially
less correlated in the future, the
benefits of stock
diversification could become more than just «incremental».
The
benefit comes from the added
diversification: the U.S. market is much bigger than Canada's, and it's
less concentrated in commodities and banks.