Diversify away from the US?

[adamu]

you think people said the same thing when Japan stocks dominated the international stock market in the bubble days? It was 45% of market back then.

No idea, would be interesting to know! There must be enough material around. It was slightly different though, because Japan has been heavily influenced by the US since the end of WWII.

[MajesticSoup]

Everytime I think about diversifying away from the US, I look at my emaxi slim emerging markets etf, sigh, then go back to investing into all country.

As much as I want to believe that there will be a time soon where the US underperforms, the signs just aren't there yet.

Maybe when blue chip companies face greater competition I'll revisit this idea. China also carries political risk, so even if Chinese based companies are become extremely competitive, it feels like we would be drastically upping our risk profile to capture that.

[Tsumitate Wrestler]

Everytime I think about diversifying away from the US, I look at my emaxi slim emerging markets etf, sigh, then go back to investing into all country.

As much as I want to believe that there will be a time soon where the US underperforms, the signs just aren't there yet.

Maybe when blue chip companies face greater competition I'll revisit this idea. China also carries political risk, so even if Chinese based companies are become extremely competitive, it feels like we would be drastically upping our risk profile to capture that.

With EM being only about 10% of the global market, why did you pick it over other developed countries?

My wife wanted diversity, but did not like the idea of investing in EM, so she essentially just chose the Kokusai index, {Developed ex-Japan} and added Japanese exposure back into her iDeco.

That was definitely a "bet", but less so than a pure American allocation.