Question

Each student will read an article in the periodical that discusses the role of investing in global securities as part of overall portfolio selection. The student will write a 5-page summary that recaps and criticizes the article. Student grades will be given based on the ability of the student to clearly demonstrate an understanding of the role of international diversification on portfolio selection.

Can anyone direct me to a good article that is suitable to complete this assignment?

Answer 1

A good article that is suitable to complete this assignment is an article titled - "Why Global Diversification Is Still A Safe Bet For Your Investment Portfolio".

This is a suitable article as it comprehensively talks about the need for hedging bets for investors and also talks about how a large number of investors overestimate the risks if investing abroad and in global securities. The article mentions that home bias is short sighted and investors should invest in securities outside the home market. This is despite the increased level of market correlation across the world.

The article mentions how diversification by investing in global securities becomes self-reinforcing in nature in the long run. This makes the global financial markets more stable and more lucrative in terms of balancing the risk-return profile of investments.

Link to the article:

https://www.forbes.com/sites/hbsworkingknowledge/2017/06/13/why-global-diversification-is-still-a-safe-bet-for-your-investment-portfolio/#5fea22e360a1