For investors who are heavily invested in the US markets, there may have been some disappointment when they saw their returns during the six month period ending in September. The S & P 500 has shown an 8.3% return year to date as of September 30th, but some overseas markets such as India (+24.7% over the same time period) have shown higher returns.1
Portfolio diversification strategy is important for all investors. While diversification does not guarantee profit or protect against loss in declining markets, investing mainly in US stocks (or any single country or region) can be harmful to your portfolio and ability to reach your goals. The below chart demonstrates the importance of a balanced portfolio and shows how different markets and asset classes can perform well one year, and not so great the next year.
[+] Read More