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How Diversifying Can Help You Manage Market Mayhem (Continued from Prior Part) Geography
It’s natural to have a home-country bias, and the US is still one of the strongest markets in the world. But there’s no denying we live in a global economy. There can be real benefits to expanding your geographic horizon to pursue opportunities in other regions and countries. Try to have a risk-balanced blend of investments across developed and emerging markets so you’re well positioned globally. Also, keep in mind that the value of the dollar against other currencies has become more important to your bottom line lately. So consider whether some currency-hedged exchange-traded funds (or ETFs) may help to protect your portfolio against sudden changes.
Market Realist – You should pursue opportunities in other regions to improve your risk-return profile.
Diversifying your equity portfolio across various geographies and segments is important to improve your risk-return profile. Segments like emerging markets and frontier markets help you get access to higher growth, even though you take on higher risk.
The graph above shows the correlations of emerging markets (EEM), frontier markets (FM), the S&P 500 (SPY)(RSP), and developed markets outside North America (EFA) with one another considering weekly returns over the last five years.
The correlation between the S&P 500 and other developed markets is high at +0.86. The correlation between the former and emerging markets is lower at +0.75. The correlation between the S&P 500 and the frontier markets is even lower at +0.41. The correlation between emerging markets and frontier markets is relatively low at +0.54.
Since global markets are becoming more intertwined, correlations between various geographies are rising. However, they’re still low enough to give diversification benefits. If you only hold US stocks, it denies you of opportunities abroad.
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First Quantum Minerals Ltd.
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PRODUCTEUR |
CODE : FM.TO |
ISIN : CA3359341052 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
First Quantum est une société de production minière de cuivre basée au Canada. First Quantum est productrice de cuivre, de cobalt et d'or en Mauritanie, en Republique Democratique Du Congo et en Zambie, en développement de projets de cobalt, de cuivre et de nickel en Republique Democratique Du Congo et en Zambie, et détient divers projets d'exploration au Perou et en Republique Democratique Du Congo. Ses principaux projets en production sont BWANA MKUBWA, KANSANSHI et MOPANI en Zambie, FRONTIER et KOLWEZI en Republique Democratique Du Congo et GUELB MOGHREIN en Mauritanie, ses principaux projets en développement sont KOLWESI MUSONOI en Republique Democratique Du Congo et KALUMBILA en Zambie et ses principaux projets en exploration sont KEVITSA et KEVISTA en Finlande, HAQUIRA EAST et CRISTO DE LOS ANDES au Perou et KIPUSHI en Republique Democratique Du Congo. First Quantum est cotée au Canada, au Royaume-Uni, aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 10,9 milliards CA$ (8,0 milliards US$, 7,3 milliards €). La valeur de son action a atteint son plus bas niveau récent le 02 novembre 2001 à 0,38 CA$, et son plus haut niveau récent le 11 septembre 2024 à 15,80 CA$. First Quantum possède 689 369 984 actions en circulation. |