Plus, the strongest assets for diversification and the case for international stocks.
Amy Arnott, a portfolio strategist for Morningstar Inc., explains why asset classes like REITs and high-yield bonds may raise a portfolio’s overall level of risk. She also discusses which areas investors should consider when building a diversified portfolio.
00:43 Benefits of Diversifying Beyond U.S. Stocks and Bonds
01:32 Which Asset Classes Didn’t Move in the Opposite Direction of Stocks?
04:44 International Stocks Correlations Have Shifted Towards U.S. Stocks
06:14 Should You Have International Stocks in Your Portfolio?
07:43 Commodities Stock Performance
08:51 What Hurdles Could Commodities Face?
09:47 Cryptocurrency’s Correlation Trend and Role in Your Portfolio
11:07 What Investors Need to Know About Private Market Investing
12:15 REITs vs Overall U.S. Market
12:59 Best Diversifiers for Investors to Add to Their Portfolio
Read about topics from this episode.
3 Assets That Might Not Diversify as Well as You Think https://www.morningstar.com/portfolios/3-assets-that-might-not-diversify-well-expected
How Did Diversified Portfolios Hold Up in 2023? https://www.morningstar.com/lp/diversification-landscape
Why Simpler Has Been Better for Portfolio Diversification https://www.morningstar.com/portfolios/why-simpler-has-been-better-portfolio-diversification
Why More Diversification Doesn’t Mean Better Returns https://www.morningstar.com/portfolios/why-more-diversification-doesnt-mean-better-returns
What Higher Inflation Means for Stock/Bond Correlations https://www.morningstar.com/portfolios/what-higher-inflation-means-stockbond-correlations
What to watch from Morningstar.
Why Picking Top Stocks Is Not Enough https://youtu.be/SGcGaXZ6QOM?si=b5YRrzsmX0wZwpbD
Is There a New Leader in the AI Race? https://youtu.be/_nRaUwrdhE4?si=0_YTbW_tyWFS8mxy
BOXX ETF: Cash-Like Returns Without the Tax Bill https://youtu.be/zxWuyagI6xA?si=SaryIK01qubdpWFz
Active ETFs: What Investors Need to Know https://youtu.be/Ha8E8GXDpNs?si=XMaw0F0a1OxCmlQN
Read what our team is writing:
Ivanna Hampton https://www.morningstar.com/people/ivanna-hampton
Amy Arnott https://www.morningstar.com/people/amy-c-arnott
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