Don't Give Up on the Global Portfolio

I find it fascinating how behavioral biases can lead investors astray again and again. I’ll give you a hypothetical, currently relevant example. Let’s say Judy has a well thought out, balanced global portfolio of US, developed international and emerging market stocks. She learns that her work colleague Rick, who’s a US-only investor, has beaten her portfolio soundly since last year. Here’s the reason: from January 1, 2011 to September 30, 2012 the S&P 500 Index gained...