The latest information on global capitalization finds that the US now accounts for just 35% of the world’s equity markets. Just ten years ago it was 50%. Asia also owns 35%, Europe has 25%, and Latin America 5%.
I spent a better part of Monday analyzing our portfolios to see if we should make any changes in our global allocation to equities. I modeled various options, using different managers and allocations to various countries and regions.
At the end of the day, I determined our current global allocation and managers cover the spectrum well. Given the new weightings above, we have a slight overweighting to the US and Asia and a slight underweighting to Europe and Latin America.
If you have any questions about your portfolio, please drop me an email or give me a call.