Fisher Investments on Why Global Diversification Matters

Transcript

Ken Fisher:

So, the strength of the non-US stock market in 2025 has given some people a renewed sense of the importance of being a global investor, as opposed to being an investor solely in your own country. The fact, however, is in America, there's still a lot of people that don't begin to understand how strong the non-US market was in 2025, because America is such a blessed country that you can kind of stay insularly remote from the rest of the world and not pay too much attention and feel kind of comfortable.

But in fact, global investing both allows you to have comparable returns in a year like 2025, when non-US did better than US by quite a bit, but also, to do it with less total volatility, because the whole world has different parts of the world that are zigging when other parts are zagging. It is easy in this world to get a greater sense of globalness, and it's so much easier now than even five years ago, because of AI, where you can just pull out some device, and the next thing you know, you can break down almost any question you have about the world statistically and get pretty darn accurate information. And that can include things like, I want to see all the stock markets of the world ranked by size. I want to see them ranked by return. I want to understand what the economy of country X is in these, those, in the other ways. And so, at one level, the best way to get a great sense of globalness, both in equities and in non-equity commerce, is just to say, how curious can I be?

Take a Saturday afternoon and just sit down in front of a computer. And use an AI system. You pick the one you want— Grok, Perplexity or just, you know, the system that shows up on your internet browser— and start asking questions about things outside of your country. Ask all kinds of questions. Take two hours and just keep asking questions and read the answers. And as you do that, I think you'll—if you do that every weekend for a couple hours, you'll find that before very long, you're learning all kinds of things about the world that's outside of the world you most normally live in. That will change the way you think about almost everything globally.

Thank you for listening to me. I hope you found this useful and enjoyable, and I hope your 2026 has an increasingly global quality to the way you think about things. Global first, your country second. Putting it into perspective and thinking about how all of that leads you to a better investing future. Thank you. Hi, this is Ken Fisher. Subscribe to the Fisher Investment YouTube channel. If you like what you've seen. Click the bell to be notified as soon as we publish new videos.