It is safe to say that because stock market correlations across countries has increased since 1986,that there are no longer diversification benefits to be found from international portfolio diversification.

Question

Quizplus · Accepted Answer

While it is true that stock market correlations across countries have increased since 1986, international portfolio diversification still provides diversification benefits. This is because there are still differences in the patterns of economic growth, inflation rates, and political risks across countries that affect their stock markets differently. Therefore, investing in a portfolio of stocks from different countries can still reduce overall portfolio risk and increase returns.

It Is Safe to Say That Because Stock Market Correlations