Globalization, Non-U.S. Mid And Small Cap Stocks And Asset Allocation
- Topics:
- Commercial Lending
- Tags:
- Asset,
- Stock,
- State Street,
- Portfolio,
- Operational Planning,
- Management,
- Investment,
- Globalization,
- Finance,
- Business Operations,
- ...
- Source:
- State Street
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Overview: The article emphasizes that the pattern of global production likely becoming more efficient, reasons for moving to the world market portfolio include: Diversification, Potential return enhancement and Broader investment opportunity set. In this regard, the absence of non-U.S. mid and small cap stocks often represents one of the biggest gaps in institutional investors' portfolios. The process of globalization appears irreversible; it implies that worldwide production will continue to be rationalized at a rapid rate and, possibly, that the world's sustainable non-inflationary growth rate will increase. In such an environment, global investors should consider moving towards the world market portfolio as their benchmark, and allocating a portion of their wealth to non-U.S. small cap stocks
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Format: PDF | Date: Apr 2000 | Pages: 1
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