Sea change in international markets calls for global approach

'May want to consider diversifying'

With heightened volatility in global equity markets this year, investors might be inclined to focus solely on the US. However, it may now be riskier to be geographically myopic.

Global markets tend to go through cycles when US stocks or international stocks outperform, and investors' decisions over how to position across these markets can have significant implications for performance. In a typical year, returns on US and international stocks differ by more than ten percentage points. Two of the key drivers behind these meaningful return differences are sector exposures and country-specific factors. International markets less exposed to tech The US market is highly concentrated in technology and other expensive growth stocks, with tech-related sectors mak...