The old adage is “don’t have all your eggs in the one basket”. In terms of investing that is sage advice, but even more so in a period of unprecedented global economic turmoil.
2020 has seen very wide divergence in performance between equity sectors, geographies and individual stocks. The worst asset allocation you could have had was to be 100% invested in large cap Australian equities in Australian dollars. The weighting of widely held Australian banks has played a key role in that poor performance.
I have been banging the drum about the diversification attractions of leading global equities for years. The first slide in my AIM presentation deck is “why global” and it’s never been more pertinent than right now.