In a world of global geopolitical fracture leading to regionalisms, building a portfolio requires not only asset class diversification but also regional markets and currency denominated assets diversification.
A globalized diversified portfolio would have weighted percentage allocations in commodities, bonds, stocks, real estate, etc. But a regionally diversified portfolio would require subcategory allocation based on regions, not only to capture isolated markets but also to hedge against regional volatility.
We see BRICS, USMCA, SCO, OBOR, RCEP, EU, ASEAN as some of the existing and emerging main trade and economic regional partnerships. Some of these notably growing together as global geopolitics take us towards regionalisms.
Diversifying across distinct trade routes and regions in their respective markets makes analysis more complex and challenging but a lot more fun.