Introduction
Source: World Map
Ever since taking Investments 101 to earn my Finance degree back in the 70s, the mantra of diversification, international investing and the Efficient Frontier have been pounded into my investment psyche. Sir John Templeton made his name by pioneering international investments. But that was then, this is now. Let's look at how things have changed and whether holding a large, say 20%+ internationally makes for good portfolio diversification and returns.
With 85% of GNP and 47% of market value outside the US, this is a very large asset class. Americans allocate