The Value of Diversification
Posted on: August 2, 2017
What does being properly diversified mean? At a minimum, it means not holding primarily Canadian investments. While investing in Canada may "feel" good because the companies are familiar, this will result in inferior performance over time. And in the past five years, not being properly diversified has resulted in very poor returns.
This chart shows the value of diversifying across geograpy, asset class and style. Notice over the past five years the significantt outperformance of the US and (in some years) International stocks.
Make sure your portfolio doesn't suffer from this "home country bias"