Discussion Prompt 2

You will find above a picture displaying the relative weights (in terms of total market
capitalization) of the stock markets of different countries. For example, you can see that the total
stock market capitalization of all US stock exchanges accounts for 49% of the world stock market
capitalization.
As you will see in the next lesson, there is a theory in finance which suggests that you allocate
your stock portfolio according to these weights. In other words, you should invest 49% of your
stock portfolio in US equities, no matter where you are from.
Would you follow this advice? For non-US learners in particular, would you be comfortable with
investing such a low portion of your portfolio in your home country? Why?