Most UK investors have the majority of their assets in sterling investments because their liabilities are in this currency, but by eschewing foreign equities they are losing out on great opportunities
The first thing you notice when viewing a map is the minute size of the UK. The Mercator projection shows that the UK would fit into the continent of Africa 9.5 times. The Peters projection reveals that Africa is actually 125 times larger than the UK. The UK economy is also a great deal smaller than most people appreciate. While our economy is the fourth largest in the world, it equates to just 0.5% of global gross domestic product (GDP). Why then do most investors hold the bulk of their assets in the UK market? There are a number of well trodden and legitimate answers to this question....
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