Portfolio Diversification with Global Small Caps: Opportunities and Risks
A diversified portfolio is easier to describe than to build. You can put together a mix of stock and bonds, you can spread across sectors, you can even add international exposure. The part that often gets people is the “how” behind the diversification, not the “whether.” Global small caps add a specific kind of diversification. They tend to behave differently than mega-cap growth stocks, and they often respond to a different set of economic signals. But they also come wi