20 Second Advisor: Don’t forget about investing globally

The US stock market is the biggest in the world, but investors who ignore other global
markets may miss out on a wealth of opportunity.

• Roughly 18,500 companies trade outside the US; this represents nearly 40% of
  the world’s $88 trillion equity market.
• When determining where to invest, a country’s size, population, or gross domestic product
  may not be a primary consideration.
  • Japan, for instance, is relatively small in landmass but accounts for 6% of the world’s equity market value, representing more than 2,500 companies, including familiar names like Toyota and Sony.
  • Even a tiny country like Switzerland is home to publicly traded giants like Nestlé and two of the world’s biggest pharmaceutical firms.
• A strategy focused on global diversification captures returns from thousands of companies
  around the globe and can potentially offset weak performance in one market with stronger
  returns elsewhere.