Investors all over the world often prefer to stay in their home markets. But at what cost? Going global can open up a world of choice to help improve a portfolio’s equity risk and return profile.
In a rapidly changing world, investing opportunities don’t stand still. Some industries have much stronger growth profiles than others. Earnings growth in emerging markets, Japan and Europe are outpacing the US. And returns in the US are dominated by a much smaller group of stocks than in other parts of the world.
No matter where you live, taking a global perspective can make a huge difference in generating equity returns and managing risk. For investors seeking stocks with higher earnings potential, stronger growth trends and better income prospects, we believe it is essential to venture abroad.
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Article by Mark Phelps, Scott Krauthamer - Alliance Bernstein