What Is the Right Amount of International Diversification?
Whatever amount you wish (within reason).
Tuesday’s column elicited this response in the comments section: “Gee, all this mumbo jumbo … I could have had a V-8 and vodka with plenty of ice … I may have awoken with a headache but I wouldn’t have gone to bed with one … “
Fair enough. That article came without cost, calories, or potential liver damage, which are three tallies in its favor when compared with the commenter’s usual method of achieving a headache. However, it buried the central point—that while the famed Capital Asset Pricing Model suggests that all stock investors should own the same U.S. stock portfolio, real-world considerations argue otherwise. Sorry about that.
John Rekenthaler does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.