18. U.S. Multinational Companies Offer Adequate Diversification
Fidelity found that many U.S. companies with overseas operations have gone through periods in which their stock prices were highly correlated to the S&P 500’s performance. Yet when a stock price closely tracks the market, it usually means there is less diversification. Fidelity noted a decrease in this trend, meaning U.S. multinational companies can offer better diversification, but it’s still important to keep a mix of international stocks in one’s portfolio.
