2014 and the first month of 2015 have told two different tales of the ups and downs of diversification. In 2014, U.S. large company performance was strong, but dragged down by poor performance in international and emerging market companies. So far this year, the opposite is true, with emerging markets and international companies slightly outperforming their American counterparts.
In any given moment or time frame, even those of a decade or more, it can sometimes be difficult to “feel” the benefits of diversification. This week, we turn to two recent blogs to help explain. The first, a simple look by Irrelevant Investor and Ritholtz Wealth Management Research Director Michael Batnick. The second, a more detailed dive into what long-term stock returns are telling investors with blogger, CFA and portfolio manager Ben Carlson. We encourage to click on both articles below to gain further insight to this powerful tool.
Have a great week!