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Why Global Diversification is Good for Canadian Investors

Why Global Diversification is Good for Canadian Investors

FromThe Empowered Investor


Why Global Diversification is Good for Canadian Investors

FromThe Empowered Investor

ratings:
Length:
30 minutes
Released:
Oct 5, 2023
Format:
Podcast episode

Description

In today's episode, we highlight the benefits of global diversification for Canadian investors. We highlight actionable strategies for Canadians looking to invest outside their home turf, making the once-challenging access to US and international markets more straightforward and affordable. We start by reviewing the groundbreaking work by Henry Markowitz on modern portfolio theory, illuminating how diversification can help you gain better returns with less volatility. We discuss the Canadian investor tendency towards home bias in investments and discuss the merits of looking beyond national borders. Wrapping up the episode, we point to a recent Vanguard report that outlines the ideal equity allocation for Canadian investors. Join your hosts Keith & Marcelo as they guide you through this intricate yet vital topic, helping you craft a global investment strategy that's well-rounded and research based. Key Topics:Why Canadian investors should consider global diversification for better returns (1:46)How diversification enhances returns while reducing risk (5:47)Exploring the home bias among Canadians and its effect on their portfolios (13:13)Global investors favor home markets; Americans least biased, Australians and Canadians most biased (16:48)Assessing concentration risks in the Canadian equity market (20:41)Analyzing Vanguard Report's endorsement for global diversification in Canadian portfolios  (22:54)Review of Vanguard's recommended global allocation for Canadian investors: 30% Canadian equity, 70% international (US, EAFE & Emerging Markets)Why it’s easier than ever for Canadians to build globally diversified portfolios (26:53)Mentioned in this Episode:Tulett, Matthews & AssociatesVanguardThanks for Listening!Be sure to subscribe on Apple, Google, Spotify, or wherever you get your podcasts. And feel free to drop us a line at lawrence@tma-invest.com or 514-695-0096 ext.112Follow Tulett, Matthews & Associates on social media on LinkedIn, Facebook, and more!Follow The Empowered Investor on Facebook, LinkedIn, and Instagram
Released:
Oct 5, 2023
Format:
Podcast episode

Titles in the series (93)

If you've ever felt overwhelmed by the sheer volume of choices and voices in the Canadian financial services industry, The Empowered Investor Podcast can transform your investment experience and increase your odds of becoming financially secure – forever. With his simple, straightforward approach, host Keith Matthews cuts through the noise to help you make better decisions and discover the best investment and planning strategies for you and your family. As a portfolio manager and advisor at Tulett, Matthews & Associates, Keith has spent twenty-five years helping investors achieve their financial goals using the same planning and portfolio principles discussed in The Empowered Investor podcast. Always an advocate for investors, Keith has spoken at global conferences, been quoted in many Canadian newspapers and magazines, and recently published the new and revised 4th edition of his book, The Empowered Investor. To learn more about Keith’s client advisory services or to request a complementary copy of the latest edition of The Empowered Investor, please visit www.tma-invest.com