The inclusion of assets from countries with business cycles that are not highly correlated with the U.S. business cycle reduces the portfolio's responsiveness to market movements.

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When assets from countries with business cycles that are not highly correlated with the U.S. business cycle are included in a portfolio, the portfolio's overall responsiveness to market movements is reduced. This is because when one market is experiencing a downturn, the other market may be experiencing growth, helping to balance out the overall performance of the portfolio. Thus, including non-correlated assets can help to diversify a portfolio and reduce overall risk.

The Inclusion of Assets from Countries with Business Cycles That