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Global stock market linkages reduce potential for diversification

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  • Karen K. Lewis

Abstract

Recent European government debt difficulties demonstrate how linked stock markets have become. Problems in countries such as Greece and Italy have depressed stock markets not only on the continent but also in the United States. Such comovement across international financial markets highlights U.S. equity markets? exposure to foreign markets.

Suggested Citation

  • Karen K. Lewis, 2012. "Global stock market linkages reduce potential for diversification," Economic Letter, Federal Reserve Bank of Dallas, vol. 7(2), February.
  • Handle: RePEc:fip:feddel:y:2012:i:feb:n:v.7no.2
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    Keywords

    International finance; Financial markets;

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