Think of it as the ultimate in diversification: Your clients own what all other investors collectively own. This is the so-called market portfolio, a representative slice of the investable universe.
The market portfolio includes U.S. stocks, and also foreign shares, bonds and every other investment owned by the world’s investors, with each holding weighted by its market value. In effect, by buying the market portfolio, we can piggyback on the collective judgment of all other investors.
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