PT - JOURNAL ARTICLE AU - Yesim Tokat AU - Nelson W. Wicas TI - Short-Run Considerations for the Long-Term International Investor AID - 10.3905/joi.2005.479387 DP - 2005 Feb 28 TA - The Journal of Investing PG - 32--40 VI - 14 IP - 1 4099 - https://pm-research.com/content/14/1/32.short 4100 - https://pm-research.com/content/14/1/32.full AB - The hallmark of international investing over the long run is portfolio diversification; its benefits are sometimes unclear over shorter investment horizons. A focus on the cyclical equity bull and bear markets that can obscure the long-term case for international investing shows that a portfolio diversified into foreign stocks has typically provided higher returns or lower volatility than a U.S.-only portfolio, although behavioral and practical considerations call for a smaller allocation than standard recommendations. In the end, investors must weigh the expectations of long-run risk-adjusted return against the potential regret of underperforming benchmarks or peer groups over shorter investment horizons.