What Is the Right Amount of International Diversification?
Whatever amount you wish (within reason).
Whatever amount you wish (within reason).
Clear Heads
Tuesday’s column elicited this response in the comments section: “Gee, all this mumbo jumbo … I could have had a V-8 and vodka with plenty of ice … I may have awoken with a headache but I wouldn’t have gone to bed with one … “
Fair enough. That article came without cost, calories, or potential liver damage, which are three tallies in its favor when compared with the commenter’s usual method of achieving a headache. However, it buried the central point—that while the famed Capital Asset Pricing Model suggests that all stock investors should own the same U.S. stock portfolio, real-world considerations argue otherwise. Sorry about that.
John Rekenthaler does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.