🌍 Global Markets · Lesson 1 of 6 · 9 min
Why Invest Globally
🌍 From 2000 to 2010, US stocks returned approximately zero. Developed international stocks returned about 25%, and emerging markets more than tripled. The decade after that, the US dominated. Nobody knew which would win — which is exactly why putting everything in one country's market is a bet you're already making, whether you realize it or not.
💡 Key idea
US-only = country concentration risk. Global = diversified.
🧠 Why it matters
US has outperformed 15 years. But over longer periods, international often wins. Diversification reduces risk.
🌍 In the real world
📊 2000-2010: US ~0%. Developed international ~+25%. Emerging markets +200%+. Cycles change.
📌 Takeaways
- US is 60% of global market
- Different countries lead different decades
- Emerging markets = higher growth
✅ Test yourself
US share of global market?
- 20%
- 40%
- 60%
- 90%
Answer: C · 60%
The US is roughly 60% of global stock market value — huge, but still leaves 40% elsewhere.
Why invest internationally?
- Foreign stocks always win
- Diversification — different countries lead at different times
- To avoid all taxes
- It is required by law
Answer: B · Diversification — different countries lead at different times
Different economies outperform in different decades. Going global spreads your risk and opportunity.
What is a risk of international investing?
- There is zero risk
- Currency swings and different regulations
- It is illegal
- Foreign stocks never grow
Answer: B · Currency swings and different regulations
Currency moves, political differences, and varied regulations add risk — diversification helps manage it.
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