https://m.youtube.com/watch?v=AgzJ7nOsZZ8
Portfolio like a pyramid, with layers
Starting from the base:
1 - A base of globally diversified funds and bonds
- global funds
- global bonds
Home investment vs global diversification
- US is 60% of total market cap, but has 20% of world GDP
- home country : investors prefer to invest in their own country (“just buy S&P 500” for US investors)
Advice #1
- match global market cap with country-specific ETFs
- 60% US
- … TBD
… WORK IN PROGRESS …