When you hear the financial media, friends, family, and co-workers refer to the market, what comes to mind? Chances are they are referring to the S&P 500 or the Dow Jones 30. However, those indexes represent large U.S. companies and are only a portion of the market. Not only are there additional components to the U.S. markets (mid and small cap companies, and fixed income/bond markets), we live in a global world with global markets.
We invite you to take a look at the following illustrations that depict the size of each country to reflect its total relative market cap (A country’s equity market capitalization, or market cap, reflects the total value of shares issued by all publicly traded companies and is calculated as share price times the number of shares outstanding).
As you can see, there is a world of opportunities and hence why we believe in a globally diversified investment strategy.