Does Magic Formula Investing Provide International Diversification?

International diversification is one of the most sought advice on the portfolio of financial planning experts. In his book The Future for Investors describes Wharton professor Jeremy Siegel, the demographic trend of the young population of countries like China and India, Finally move the center of economic power in the world in the East. Given this and the fact that U.S. investors have about 85% of assets in domestic companies, he and many others suggest that 30-40% of the portfolio must be composed of foreign companies or companies that generate significant sales outside North America invests. The main reason for foreign companies, which is not to ignore the fastest growing markets. While the establishment and growth of new categories of products and services is a way to increase it much easier for the tide “of the macro-economic growth has benefited to a large number of uneducated School to start a business, make money and (especially) begin to acquire goods and services, (more…)