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M* Do Foreign Stocks Really Diversify? Video Presentation

TedTed
edited May 2015 in The Bullpen
FYI: Correlations between U.S. and foreign stocks have generally been rising over the past several decades, but that doesn't mean you should shun overseas holdings.
(The Linkster has never been a big fan of foreign investing. That's not to say that for time to time I have held several ADR's, but for the most part I 'd rather have foreign exposure from large American multinationals. In my opinion foreign investing is overstated and allocations should be a fraction of U.S. investments. Yes, just call me John Bogle !)
Regards,
Ted
http://www.morningstar.com/Cover/videoCenter.aspx?id=697324

Larry Swedroe: Asset Allocation Guide: U.S. vs. International Equity
http://www.cbsnews.com/news/asset-allocation-guide-us-vs-international-equity/

Understanding The Recent Rise In Correlations And How You Can Turn It To Your Advantage:
http://www.forbes.com/sites/riabiz/2011/03/09/understanding-the-recent-rise-in-correlations-and-how-you-can-turn-it-to-your-advantage/print/

Does International Investing Really Offer Diversification? :
http://www.investopedia.com/articles/financial-theory/09/international-investing-diversification.asp

Vanguard:
http://www.vanguard.com/pdf/ISGGEB.pdf

Research Paper:
http://www.nber.org/digest/jul07/w12697.html

Bespoke: Global Equity Market Correlation Matrix:
http://bespokeinvest.com/thinkbig/2014/3/14/global-equity-market-correlation-matrix.html

AAII Journal: THE REAL ROLE OF FOREIGN STOCKS
IN AN INVESTOR’S PORTFOLIO
http://www.aaii.com/journal/article/the-real-role-of-foreign-stocks-in-an-investor-s-portfolio



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