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Re: Diversify away from the US?
Posted: Tue Oct 01, 2024 6:42 am
by adamu
Tsumitate Wrestler wrote: ↑Tue Oct 01, 2024 5:08 am
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.
Re: Diversify away from the US?
Posted: Wed Oct 02, 2024 11:36 pm
by 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.
Re: Diversify away from the US?
Posted: Thu Oct 03, 2024 1:20 am
by Tsumitate Wrestler
MajesticSoup wrote: ↑Wed Oct 02, 2024 11:36 pm
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.