American consumers are quick to buy products made by companies headquartered overseas, but when it comes to investing, they often exhibit a bias towards U.S. stocks.
To put this in perspective, consider the electronics sector. According to Fortune Magazine, nine of the 10 largest electronics makers are non-U.S. companies.1 Every day, millions of U.S. consumers use Android smartphones from South Korea-based Samsung and do their work on computers from China-based Lenovo. For leisure, they watch televisions or play video games from Japan-based Sony.
But when it comes to investing, U.S. stocks make up over 70% of a U.S. investors’ equity portfolio, an approach we believe is causing many Americans to miss out on some of the world’s best investing opportunities.2
Global strategies provide investors the freedom to invest anywhere in the world without being constrained to any single region.
Watch our short video to learn more about how an investment portfolio may benefit from global strategies.
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1 Source: Fortune.com, 2014 Global 500, July 2014.↩
2 Source: Strategic Insight, as of 6/30/15. Includes U.S. Open-End and ETF ex MM and FOF assets. World stock is split to reflect 6/30/15 asset allocation: 48% into U.S. Category Group, 48% into International Developed Category Group and 4% into Emerging Markets Category Group. U.S. Domiciled Fund and ETF Equity Assets, by region. Past performance does not guarantee future results.↩
Investments in mutual funds are subject to market risk and volatility. Shares may gain or lose value. Foreign investments may be volatile and involve additional expenses and special risks, including currency fluctuations, foreign taxes, regulatory and geopolitical risks. Emerging and developing market investments may be especially volatile. Diversification does not guarantee profit or protect against loss.
These views represent the opinions of OppenheimerFunds, Inc. and are not intended as investment advice or to predict or depict the performance of any investment. These views are as of the publication date, and are subject to change based on subsequent developments.