The most common rule of investing is simple: stick to what you know, do what feels comfortable. What does this mean for trading portfolios? It means they are mainly geared towards domestic stocks and bonds, offering a comfortable familiarity and safety. Things are changing, however, with a new school of thought that advocates for a globally diversified portfolio.
A new breed of investors is now looking beyond the stocks they traditionally trust, and most importantly, beyond their comfort zone. The question is no longer whether someone should be investing in a globally diversified portfolio, but rather how to do so in the most efficient way possible.
