RT Journal Article
SR Electronic
T1 Investing in Global Equities
JF The Journal of Portfolio Management
FD Institutional Investor Journals
SP 88
OP 94
DO 10.3905/jpm.2004.412323
VO 30
IS 3
A1 Stefano M.F.G Cavaglia
A1 Jeffrey Diermeier
A1 Vadim Moroz
A1 Sonia De Zordo
YR 2004
UL https://pm-research.com/content/30/3/88.abstract
AB Accelerating globalization of business enterprise and the integration of capital markets are altering the international equity investment environment. The empirical evidence suggests that security price returns have become more closely associated with industry affiliation than with country of domicile. Within-country comparisons of securities are now a less effective way to identify attractively valued stocks; comparing securities within global industries and across countries appears instead to provide a more powerful approach to identifying future winners. Structural changes like these necessitate a more global approach to equity investing. Plan sponsors, asset managers, and individual investors should respond by altering their investment process to reflect this new economic reality.