Global Equity Investing: Do Countries Still Matter?
18 Pages Posted: 21 Feb 2011 Last revised: 7 Mar 2011
Date Written: February 16, 2011
World equity investment vehicles - sector and regional funds, single-country funds and emerging market sector funds, just to name a few - can be dizzying, but are worth exploration. The following key topics about global investing provide a solid foundation for investors to both understand and make informed decisions about the role of country-focused investment strategies. 1. Globalization: Are investors reluctant to go global? 2. Country versus Sector Effects: -What does historical and recent research reveal? -Why have sector effects and country correlations increased? -How are baskets of stocks correlated to both their home country markets and global sectors? 3. Implications for Investors: What are the implications for investors seeking to build a portfolio of global equities?
Keywords: Global, Equity, Country, ETF, Top-down, Investing, Country Effect
JEL Classification: G00
Suggested Citation: Suggested Citation