John Hempton of Bronte Capital blogs about the real-world--as opposed to academic--importance of international diversification.
If you are a superwealthy American, one of the greatest risks to your grandchildren's wealth is a change in fortunes of the United States. History strongly suggests that its global economic dominance will not last.
History also suggests that it's very difficult for the wealthiest people in the wealthiest nations to avoid complacency about their place in the world (The wealthiest people in the poorest nations tend to know better). European jews before World War II are a conspicuous example, both in Germany and elsewhere. Another example, which I'm currently reading about and hope to address in a future blog post, is the British aristocracy of the later 19th century.
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