Wednesday, April 26, 2006
Probably not but look at that chart. Hey now!
I am not too worried at this point about the duration and magnitude of the decline. Client accounts have had a very good month (I realize it is stupid to think about one month but this is a worthwhile point) due mainly to the simple top down decision to overweight foreign.
This type of decision does not require keen insight, just a basic understanding about diversification. It is these types of portfolio moves where a lot of your return gets determined.
There are plenty of investment choices that that give broad or narrow foreign exposure without having to ever worry about single stock selection or risk, for people that do not want individual stocks.
I write about this a lot because I believe it is important and will become increasingly more important in the coming years.
Posted by Roger Nusbaum at 10:48 AM