August 16th, 2017 | USA Today
Are you making mistakes in your investments? – Gerstein Fisher weighs in
Is your portfolio under-diversified? That is the topic of the recent USA Today article, “Mistakes you might be making with your stock investments”. In the article, Gerstein Fisher Head of Quantitative Research and Portfolio Strategy Gregg Fisher suggests that many Americans have too little invested outside the US because of home-country bias. This can translate into missed opportunities and less portfolio diversification.
The article references a recent letter from Gregg where he writes, “We estimate that Americans have only 20 to 25 percent of their equity portfolios in foreign stocks, whereas at least 30 to 35 percent may be more appropriate,” especially given the fact that foreign companies account for about three-quarters of global economic output and half of global stock-market capitalization or value. Over time, Gregg adds, a globally diversified portfolio can be expected to beat one focused solely on the US.