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A 401(k) Menu for Today's Investing Reality
401kHelpCenter.com
May 21, 2013
"Traditionally, investors in the United States have tilted portfolios towards domestic holdings of equities and fixed income. This made sense in the 1970's when the U.S. economy represented 36% of the world's economic output and U.S. companies comprised 70% of the market capitalization of the world's publicly traded stocks. However, today is different. Currently, the U.S. accounts for 23% of the world's economic output and U.S. companies represent 42.3% of the world's publicly traded stocks ... Despite this change in world market capitalization, the average 401k investor's exposure to international funds is just 8% of assets[.]"
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