Some pitfalls in global investing

Tatiana Didier, Roberto Rigobon, Sergio Schmukler 12 November 2012

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Since the 1990s, a large proportion of world savings have gone to institutional investors that manage those assets by investing globally. This trend has driven a sharp increase in capital market activity and financial globalisation (cf. Obstfeld and Taylor 2004; Kose, Prasad, Rogoff and Wei 2009). Given this accumulation of resources in professional and sophisticated asset managers, you might expect to see significant international diversification accompanying this process, with many countries and companies benefiting from the influx of foreign capital.

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Topics:  International finance

Tags:  assets, international finance, global funds, fund

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