We recommend a globally diversified portfolio because….
Sometimes large company stocks outperform small company stocks
Sometimes small company stocks outperform large company stocks
Sometimes US stocks outperform International stocks
Sometimes International stocks outperform US stocks
Sometimes value stocks outperform growth stocks
Sometimes growth stocks outperform value stocks
Sometimes real estate company stocks outperform all of them
And some years real estate company stocks underperform other investments.
Because no one can reliably know which asset class will do the best or worse in the future, we recommend owning all of them in a globally diversified portfolio.
This strategy will also prevent big mistakes, like trying to time a certain sector, industry or geographic region (like investing heavily in oil company stocks a year ago).
This strategy will provide you the best opportunity to have a successful investment experience over the long term.