Whats the pros and cons of a globally diversified Portfolio?

Question

Whats the pros and cons of a globally diversified Portfolio?

Answer 1

You are putting your eggs in different basket. In other words, you are reducing the risk of losing your money

Answer 2

the pros are that you spread you risk around, which means that your peaks and troughs will be more manageable.

the cons are that you are exposed to risks that you could avoid by investing domestically: most notably currency risk.

overall, it's worth it to diversify into foreign issues, but i would suggest doing so either through mutual funds or ADRs (which are foreign stocks that are also listed on domestic markets).

Answer 3

yes -putting the eggs in different markets is buffering the losses and spreading the risks.

but the commissions fr buying in global markets may work out higher than in local market.

Answer 4

Pros = less risk

Cons = less potential growth