Why Investors Should Diversify Globally


One of the distinguishing features of Heritage Financial’s investment philosophy is our belief that investors should diversify globally. While there are many reasons for this that we can explain and relate specifically to a client’s personal situation, this article from CNBC does a nice job highlighting some basic points as to why it makes sense.

Of particular note is that:
• valuations are more attractive in some international markets than in the U.S. right now
• avoiding home country bias allows you to take advantage of these opportunities
• getting your international exposure through the portion of earnings that S & P 500 companies generate overseas prevents you from investing in smaller international companies that have historically provided outsized returns

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