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Diversifying Retirement Portfolios with Global Assets
This chapter explores the importance of diversifying retirement portfolios with assets beyond one's country, such as commodities, gold, and foreign stocks, to optimize performance and reduce risk. It delves into the concept of the ulcer index as a metric for measuring portfolio losses and emphasizes the benefits of rebalancing for long-term returns. The discussion also covers factors like currency hedging, safe withdrawal rates, and the impact of economic events on portfolio performance.