Why Invest in International Equities?
Home-country bias is found throughout the world, and it leads many US investors to load up on US equities and hesitate to look across borders or overseas for investment opportunities. And the bull market in US equities that started in 2009 has only reinforced this domestic bias.
But if investors took a longer-term view, they might see that this emphasis on a single country means they’re not considering complementary assets—securities with the ability to zig when the US zags. This paper presents three arguments for why international equities should be a component of every investor’s portfolio.