Market Correlation
Many people with access to much greater tools and information have pondered such great thoughts, specifically Gary Brinson and the institutional acceptance of international diversification and its benefit. In Gary's honor, I submit the following three year chart.
In my humble opinion it sure looks like the markets all move in the same direction at the same time, therefore highly correlated. It appears RISK best explains the difference in return.
The international diversification free lunch is over and those with superior risk management skills will achieve superior returns.
In my humble opinion it sure looks like the markets all move in the same direction at the same time, therefore highly correlated. It appears RISK best explains the difference in return.
The international diversification free lunch is over and those with superior risk management skills will achieve superior returns.
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