I have read in some books that a good investment strategy must be simple. Let's assume that this is true.
In the case of USA, a simple strategy would be to invest in the
S&P 500 or the
However, in the EU, it seems to me much more complex to define what would be a simple strategy, due to the fact that such market is made of several different countries (some with a different currency), with different regulations etc.
Thus, if an investor wants to achieve the diversification that the
S&P 500 provides, he/she needs to invest in the whole EU, which adds more risks such as currency and political. (or I'm wrong?)
My question is which investment strategy would be regarded as 'simpler', investing in the whole EU market (simplicity through more diversification) or investing in just one developed country such as Germany (simplicity through less currency and political risk, trying to keep diversification by investing in the whole German market)?