In the paper, I think international diversification mostly helped people in ex-US countries (i.e. their ‘international’ is a large slug of USA).
3) The individual must be okay with international exposure. In the case of this paper, 50% of their portfolio in developed ex-US countries. This helps diversify some country-specific risk and relies less on the excellent performance the U.S. Stock Market has seen going forward into the future where that outperformance may not be as certain.
There’s much more country specific risk in small countries with undiversified stock markets.
Statistics: Posted by Admiral Fun — Wed Mar 06, 2024 6:11 pm — Replies 41 — Views 7780