gt4715b wrote:Most people that have more than 50% international allocation do it because they believe in having their portfolio match the global equity market capitalization. Right now the US is about 44% of the global market cap, thus a person doing this would have a 56% international allocation. For more details look at the Vanguard ETF VT. This is usually considered the maximum recommended international allocation.
This is discussed widely in many other threads.
As I indicated in my original post, I've been reading a lot of those old threads on international allocation, going back years, and although I have seen this rationale mentioned for going more than 50%, I don't know that I found a single person saying they were actually doing this for that reason. So I was just curious to hear from the horses mouth, as it were. And I thought perhaps people had some other unstated reasons.
livesoft wrote:The polls could be giving you a false impression. As an example, I want nominally 50% international, but because international has done well I actually have slightly more than 50% of equities in international. If the poll has an option "more than 50%", then I have to choose that and I fall into that 10% category that you mentioned.
I will go out on a limb and guess that a significant fraction of the folks with more than 50% international actually do not live in the US. Another fraction is probably really nominally 50%.
That doesn't leave many others to explain their reasons.
Yes, I wondered if many of the people who are over 50% don't live in the U.S. Again, that's why I wanted to ask explicitly. See if anyone is using global market cap to determine their international allocation and what they think/how the feel about that. I have seen a few people say they overweight international due to current valuations (but I suppose that is not a strickly boglehead way of doing things).
I also find myself in a position of going over 50% when that was nominally intended to be my international allocation, although this occured for me because I decided to split my 10% (of equities) REIT allocation 50/50 between U.S. and global. This effecitvely put me at 45% U.S., 55% international. Now I'm just trying to decide if I should bother rejiggering all of my other allocations to get back to 50/50 U.S./International.
As it stood, all my allocations were rounded off to simple even 10% proportions, which I liked for simplicity sake and it just made it easy to keep track of. Now I would have to shift to a bunch of oddball numbers 12, 33, 18, 9, etc. to get the same proportions I had with my other funds. It's relatively trivial, I suppose, one way or the other, but that's why I'm curious to hear the thoughts of anyone who has deliberately chosen to have more than 50% international.