Global asset allocation spreads risk across different economies from "summary" of All About Asset Allocation, Second Edition by Richard Ferri
Global asset allocation is a strategy that involves spreading investments across different economies around the world. By diversifying in this way, investors can reduce the risk associated with any one particular market or region. This approach recognizes that different economies may perform differently at any given time, so having exposure to multiple markets can help balance out the overall risk in a portfolio. When one market is struggling, another may be thriving, and vice versa. For example, during a recession in one country, another country might be experiencing economic growth. By having inves...
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