International diversification is a logical strategy to minimize risk and preserve wealth, and it keeps you from trying to guess which country may post the highest returns each year. Why Diversify Globally? Rising Standards Can Fuel Growth. Since 1950, the global economy has grown faster than the global population., Throughout this guide, I'll examine why spreading investments across global equities continues to make sense, how to construct a properly balanced portfolio, and when to adjust your international allocation to optimize returns. Why global diversification still matters in 2025. The U.S. market has dominated global investing for years now., First, imagine the equity investor who prudently stayed globally diversified over the years: They may understandably feel buyer’s remorse. After all, a $100 investment in U.S. stocks 10 years ago would have grown to $334 by the end of 2024 (an annualized 13% return)—more than twice the final balance of $160 (an annualized 5% return) for a similar investment in non-U.S. stocks. 1 The wide , , , .