Money managers say Canadian investors could be missing out on potential returns and lower volatility if they're not allocating a portion of their portfolio to U.S. equities.
There's roughly an eight per cent swing in either direction of that target depending on the short- and long-term investment opportunity, Petursson says, putting the potential U.S. weighting between 15 and 31 per cent. A common investing mistake is home bias, where an investor prefers domestic stocks over foreign equities, leading to poor geographic diversification. Home bias can occur for a variety of reasons, including familiarity with home country companies and the economy, accessibility and foreign exchange risks.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: CTVNews - 🏆 1. / 99 Read more »
Source: nationalpost - 🏆 10. / 80 Read more »
Source: financialpost - 🏆 7. / 85 Read more »