In 2017, about 29% of S&P 500 revenues came from overseas. This fraction increased to about 40% by the end of 2022.Some investors argue that this global exposure is a substitute for true international diversification, i.e., that it is not required to invest in non-US stocks. Global revenues certainly help to stabilize the fundamentals and stock prices of the underlying companies, but they are unlikely to save your portfolio from bets on the wrong country/region.
VOO: Global Revenues And Global Diversification Are Not The Same
In 2017, about 29% of S&P 500 revenues came from overseas. This fraction increased to about 40% by the end of 2022.Some investors argue that this global exposure is a substitute for true international diversification, i.e., that it is not required to invest in non-US stocks. Global revenues certainly help to stabilize the fundamentals and stock prices of the underlying companies, but they are unlikely to save your portfolio from bets on the wrong country/region.