Instability in global markets over the past few years has challenged investor confidence in foreign investments and made many people question how to effectively manage a global portfolio, according to Philip Falls, senior investment consultant with PBI Actuarial Consultants.

“The theory says you should be [invested in global markets]. But if you did it, on average, it was a bad idea unless you hedged all of your… foreign exposures. That’s a belief statement that’s a real investment challenge for people.”