I would argue that the investment industry has done a great job at getting the message out there that diversification of returns is a great way to help reduce your portfolio risk. Most investors do not put all their eggs in one basket, or all their money into one stock. Many investors are good at stock picking across the spectrum of market capitalization in both Canada and the U.S. There is still more diversification work and education to do!
In the image below, I blocked out other investable asset classes that posted different returns to Canadian (Orange) and U.S. (Blue) Equities over the past 10 years. Do you know what some of them are? Were you exposed to any of them? Did you rebalance your portfolios after major moves?
In the image below, I blocked out other investable asset classes that posted different returns to Canadian (Orange) and U.S. (Blue) Equities over the past 10 years. Do you know what some of them are? Were you exposed to any of them? Did you rebalance your portfolios after major moves?