Key Takeaways – Opportunity Set and Diversification
- The opportunity outside the U.S. is much larger and foreign countries account for the vast majority of global GDP
- Correlations are elevated, but historically have varied over time
- The diversification benefit of an international equity allocation could improve going forward
- The opportunity set is very different outside the U.S., with different sector and industry exposures
- There are lots of great companies, and stocks, outside the U.S.