Is the world getting closer? Are stock markets more correlated than ever before, thereby negating the benefits of global diversification?  If the answer to both of these questions is yes, then you won’t have to worry about which stock market in invest – just buy the STI ETF if you are based in Singapore.  But if markets are not getting closer, then owning just Singapore stocks is not going to be a smart way to grow your wealth or manage your portfolio risk.

How to find out? I’ve trawled the data of 17 stock markets other than Singapore from various databases to give you the straight answer from the perspective of a Singapore-based investor.  The 17 markets are: Australia, Austria, Belgium, Canada, Denmark, France, Germany, Hong Kong, Italy, Japan, Netherlands, Norway, Spain, Sweden, Switzerland, the UK, and the US. In terms of market capitalization, they are virtually the whole world.  My …