Don’t Forget the World
If you had to rank domestic large-cap stocks, corporate bonds, 30-day Treasury bills, and global stocks according to their risk levels, which one would you say carries the greatest risks? Given the perilous state of the world economy during the past several months, most people would probably say global stocks. If you had to rank these same asset classes according to performance, which would you say was the top performer? Over the past 40 years, it was global stocks, despite losing an incredible 43% of their value in 2008 (see graph). Over the long term, global stocks and the S&P…