Global Diversification Has Disappointed. Don’t Give Up on It
After an incredible 15 years for US public and private equities, investors shouldn’t count on history repeating.
Illustration: Jack Hughes for Bloomberg Markets
The conventional wisdom in investing insists people should overcome their home bias and invest globally. There are great businesses around the world, the thinking goes, and investors benefit by looking beyond their borders. But this idea is now being tested as never before, particularly among US investors.
The reason: For almost a generation, US public and private equities have thumped their overseas counterparts. Young investors in their 20s and 30s may not even recall a time when the US didn’t dominate global markets.