Invest without borders by Ken Evason, chief investment officer and CEO of Windermere Wealth Advisors LLC
Americans traditionally construct portfolios with local companies because it feels good. We invest in companies we know because they are familiar and we believe in their viability.
This home country bias results in most Americans holding portfolios made up of predominantly U.S.-based investments. While this may result in a feeling of safety and familiarity, international investing returns have far exceeded those of U.S. markets (as measured by the Standard and Poors 500 index) over the past five years.
I developed my own American home country bias when I moved to the U.S. from Canada in 1988. Prior to moving, I invested heavily in Canada, which despite having numerous government safety nets from education to health care, represented a viable economy with an abundance of natural resources and strong trading activity.
Upon moving to the U.S., I found myself in the midst of a rebirth of the American spirit of unbridled capitalism. Real personal incomes were soaring. The U.S. economic engine spurred global growth for the next two decades.
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