This episode explores geographic concentration in investment portfolios, highlighting the risks of over-investing in familiar markets like Canada, which represents a small portion of the global equity market. Against the backdrop of recent stock market volatility, the hosts discuss how Canadian investors often allocate a disproportionate amount of their equity portfolios to domestic stocks, potentially limiting their exposure to global growth opportunities. More significantly, the conversation addresses the blind spot of sticking with what one knows, emphasizing the importance of diversifying into international markets through ETFs to mitigate risk. For instance, the hosts reference allocation trends and recommendations from Vanguard and the Canadian Couch Potato, suggesting a more balanced approach to global equity exposure. As the discussion pivots to practical steps, the hosts advise listeners to assess their current investment strategy and consider rebalancing their portfolios to include a broader range of international equities. Ultimately, the episode encourages investors to be aware of their biases, understand the risk they are taking on, and seek professional advice to optimize their asset allocation for long-term financial security.
