FYI: Think the portfolio recommended by your private banker is truly diversified? Think again, says Ronald Florance, founder of RMF Consulting, an advisory for foundations and wealthy families. Most U.S. investors have as much as 75% of their portfolios tied up in the U.S. Add in the overwhelming bullishness about domestic equities, Florance says, and the situation “makes me really nervous.”
Florance claims clients should instead allocate assets on a truly global scale – with as much as 35% of a client’s overall portfolio invested in stocks, bonds, alternatives and hard assets abroad. This type of portfolio, he argues, should be able to take advantage of the “enormous potential for growth” around the world.
Regards,
Ted
http://blogs.barrons.com/penta/2015/03/31/the-case-for-global-diversification/tab/print/
