- Overview and Algorithm Introduction
- Nobel-Prize Winning, Long-Term Strategy
- Index Investing
- Dynamic Fund Selection
- Investing Globally
- Tax-Loss Harvesting
- Smart Rebalancing
- The “Efficient Frontier”
FutureAdvisor taps global markets to diversify your portfolio risk across countries, regions and currencies. We take into account national economic activity (GDP) rather the valuation of market indices to channel our investments. This helps us avoid home bias, which is the tendency of investors to concentrate their risks in their domestic stock market.
Betting on just one country can be a bad move, since every nation occasionally has a down decade. The US experienced oil shocks and stagflation in the 1970s. The 1990s were Japan’s lost decade. More recently Europe has struggled to grow. Regional economic cycles are a good reason to spread your bets across multiple countries.