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.
• Stocks of the roughly 17,500 companies trading outside the US represent nearly half of the
world’s $74 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 7% of the world’s equity market value, representing more than 2,600 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.
In summary, investing in multiple countries can deliver more reliable outcomes over time, helping investors stay on track toward achieving their long-term goals.
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