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.

Leave a Comment