Why Diversify Across Countries: Chart

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One of the ways of diversification is to allocate one’s portfolio assets across countries. Since the economic systems, political systems and wealth of natural resources vary between countries the equity markets also tend to perform differently. For exmaple, when crude oil prices are soarding the Russian equity market performs well as the economy is dependent on oil. Similarly rising copper prices are a boon to the Chilean equity market. So in order to capture the benefits of diversification it is not only important to divesify across asset types or sectors but also across various countries. In today’s globalized world it is simply not wise to invest all assets in one country such as investor’s home country.

The year-to-date return of select equity markets from around the world shows the wide difference in performance:

UK’s FTSE 100: 3.3%
France’s CAC 40: 5.2%
Germany’s DAX Index:7.2%
Spain’s IBEX35 Index: 8.3%
China’s Shanghai Composite: 8.4%
India’s Bombay Sensex: 19.0%
Brzail’s Sao Paulo Bovespa: 21.3%
Russia’s RTS Index: -2.8%
Chile’s Santiago IPSA: 20.0%
Mexico’s IPC All-Share: 9.7%

Meanwhile the S&P 500 Index is up 9.94% YTD.

Source: WSJ

Recently I came across the following chart from Schwab showing the benefits of diversification across borders. Canada was the worst performer in 2015 but was the best performer the following year. Since 2006 the US market was the top market only in 3 years.

Click to enlarge

 

Source: Why Global Diversification Matters by Anthony Davidow, Charles Schwab

The above chart clearly shows that the benefits of global diversification cannot be under estimated.

Six Attractions To Visit In Paris

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Paris, the city of lights is an awesome metropolis. From museums to monuments to palaces the city has so much to offer for a traveler. The following are six tourist attractions:

1.Eiffel Tower

Click to enlarge

2.Louvre Museum

3.Palace of Versailles

4.Arc de Triomphe



5. Notre-Dame Cathedral 




6.Disneyland Paris





					

	
	
	



				
					


	


		
The Top 20 Countries by Trading Volume


				

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The G-20 countries accounted for about 78% of the global trade in 2015 according to World Trade Organization. The largest trading countries in that year were China and the US. The US was the world’s largest importer and second largest exporter after China.


The top 20 trading countries are shown in the chart below:


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Source: G20 in Figures – Summit of the G20 states in Hamburg 2017

					

	
	
	



				
					


	


		
Renewable Energy as a Percentage of Total Primary Energy Supply in G-20 Countries


				

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The share of renewable energy in primary energy supply varies widely among G-20 member nations. Renewable energy can be produced from solar, hydro, biomass, wind, etc. sources. This type of energy is virtually untapped in countries like South Korea, Russia and Saudi Arabia.However certain countries are top renewable energy producers. For example, Brazil is a major producer of renewable energy using hydro power. Other major renewable energy producing countries are Indonesia and India.


The chart below shows the Renewable Energy as a Percentage of Total Primary Energy Supply:


Click to enlarge




In the US just 7% of the energy supply comes from renewable sources. The country has a long way to go before catching with renewable energy leaders like Germany, Brazil, etc.


Source: G20 in Figures – Summit of the G20 states in Hamburg 2017

					

	
	
	



				
					


	


		
Five Attractions To Visit In Rome


				

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The Italian capital Rome is an amazing city. As the birthplace of modern civilization, Rome is dotted with hundreds of historical monuments to explore. Like the olden days, Romans today are extremely friendly and welcoming to tourists. Almost every street seems to have at least one Church and many of them hundreds of years old. For Americans who are accustomed to the same corporate junk everywhere they go within the country Rome and Italy in general is a breadth of fresh air to say the least. In this post let me share with you some of the photos from a trip.


The following are some of the top five attractions in Rome that every tourist should visit:


1.The Colosseum


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For tickets and more info please visit the Colosseum Amphitheatre site.


2.The Roman Forum




 


You can buy Colosseum and Roman Forum tickets as a combo ticket at the above site.


3.The Pantheon




Additional information can be found here. Since it is a Church there is no entrance ticket.


4. Trevi Fountain






5.The Vatican Museum and St.Peter’s Basilica








The Vatican Museum is filled with wonderful treasures. The The Gallery of Maps is breathtaking. Tickets to the museum can be bought here.


Bonus: Piazza Venezia




From foodies to history buffs to religious people alike Rome and The Vatican must be on everyone’s bucket list.