U.S. investors still have the bulk of their holdings in U.S. stocks and bonds. But today, more than three- quarters of the world’s economic output is produced by the rest of the world.1

Investors who recognize opportunities don’t end at the horizon can benefit from four major trends driving global growth:

  • Increased wealth, as a growing middle class has money to spend.
  • Technological innovation, as advances are disrupting every type of industry.
  • Dynamic reinventions, as countries and companies are embracing change.
  • Changing demographics, as an aging population wants its preferences met.

To take advantage of these opportunities, investors may want to increase their allocations to international stocks and bonds across the developed and emerging markets.

The paper Globalize Your Portfolio offers details on these opportunities and strategies that investors can implement with their advisors to gain greater exposure to all the world has to offer.

  1. ^Source: World Bank, as of 12/31/16. Latest data available.