Globalization Making Diversification More Difficult

With the recent interconnectivity of the world’s stock markets proven by the 9% decline in China’s major exchanges heard—and felt—around the world, it is becoming apparent that investors looking for international diversification might just be getting more of the same, The Wall Street Journal reports.

As Jack Ablin, CIO of Harris Private Bank, puts it: “As markets develop, they are going to be treated as one interchangeable market. It has been said that asset allocation is the market’s only free lunch. That lunch just got more expensive.”