Bogleheads

[EmergDoc]

What percentage of your equity is invested in international (Non-US) stocks? For purposes of this poll, consider REITs equity. If you are from the UK or some other country, consider international as non-US stocks or refrain from answering the poll so as not to skew results.
_________________
1) Invest you must 2) Time is your friend 3) Impulse is your enemy
4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course

[woof755]

I'm at 16% right now, DCAing into it every month for a goal of 30% of equities (20% of portfolio).

Not that this matters much, but I thought the poll could use a bump!
_________________
"By singing in harmony from the same page of the same investing hymnal, the Diehards drown out market noise."

--Jason Zweig, quoted in The Bogleheads' Guide to Investing

[EmergDoc]

[biasion]

[removed]

[EmergDoc]

We'll try one more bump to get the numbers a bit more robust.
_________________
1) Invest you must 2) Time is your friend 3) Impulse is your enemy
4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course

[fishnskiguy]

Our IPS calls for 20% Developed International, 9% EM and 8% PME. Since Vanguard's PM&M fund is 80% International, and since EM and PM&M are both at the upper end of their band, we are effectively 42% International at the moment.

Chris
_________________
Trident D-5 SLBM- "When you care enough to send the very best."

[bolt]

[removed at request of poster]

[cudaman]

I always like these polls where you expect to see a normal distribution around some mean value. I clearly see the normal distribution except for that darn 41% - 50% crowd. There should only be about 7 people in this category instead of 18, so obviously about 11 people are overallocated and should be in some lower category. Correct? I mean we can't have that smooth bell curve with a hump in it, can we?

[tetractys]

I'll probably always be in the old 2/3 domestic 1/3 international camp...if there is such a thing. That's 33.3333% Intl. to 66.6666% domestic. No one here has yet convinced me that the 50% plus in Intl. folks are anything more than recency buffs.

"I mean we can't have that smooth bell curve with a hump in it, can we?"

Uh huh cudaman, ... I would call that the 'recency buff hump.'

Peace and Love, Tet

[CountryBoy]

My perspective is that I am a Diehard and I hold for the long term. But the long term is different length of time for different people. I am logged in at 31% with international with remainder in a large allocation in VTSMX and bonds.

All countries economies go through cycles and I can not see the US economy coming back for another 5-15 yrs. We are paying out too much money for oil, devaluing the dollar, and the foreigh markets are manufacturing and developing. And, they also have this notion about saving money rather than spending money.

That together with the US not willing to address serious problems of infrastructure like roads, electric grid, bldg of levees (Katrina), education, and of course the disarray and dominance of the financial services in our economy (with this three card monte scheme of subprime CDO's), and of course our political system has some very basic dysfunctional aspects to it.

No, I do not think this country is going to turn around within 5-15 yrs anymore than an aircraft carrier can turn on a dime. Americans at this point in time just do not get it when it comes to investing in infrastructure and I do not believe they ever will. Of course they used to. That is what made us great. But that was then and this is now and for the foreseeable future.

No, I think I made a serious mistake to have put so much money in VTSMX and so little in international. I should be at 50% but I lack the self confidence to do so and so am a sheep following the Diehard orthodoxy re intl allocation.

[Rob't]

I wonder in considering equity percentage, do collateralized commodity futures, with a significant portion of their return depending on TIPS, count as equity, fixed, or some combination? Actually, likewise for REITs? As income is a significant portion of their return, are they reasonably considered pure equity? I answered 28.6%, but higher if PCRIX and VNQ move from equity to BTHOOM category.

[jpsinjpn]

Our target is currently 35% international (non-US). We will up that a bit to include more Japan because the longer we live in Tokyo, the deeper the roots reach. Who knows if or when we'll end up back in the US.
_________________
-JP

[cflannagan]

[fire5soon]

[tetractys]

[CountryBoy]

jpsinjpn could you clarify,

Could you explain why you want to increase your AA of Japan. I read in my FT today that its consumer index hit zero and that that is an indicator of recession for them historically. Also one of the big party leaders just resigned.

I know we all gotta buy low and sell high (long term of course), but you seem especially corageous. Could you explain why you buy now?

[Cloud]

Remember someday we'll be cashing out and spending in US Dollars not Euros. How much currency risk do I dare incur? The last few years it's been very beneficial but what if the dollar comes back?

[jpsinjpn]

[Valuethinker]

[wearethefall]

Valuethinker what do you see as a reasonable range of foreign equity exposure for the U.K. investor?

I'm currently at 50%.

[Valuethinker]

[hafis50]

Here's a new presentation by Peng Chen (Ibbotson):

Dynamics in the Correlations of Global Equity and Bond Returns: Implications for Asset Allocation, Nov 2007

[paulob]

I voted 76-99%. However, this is not a permanent or static allocation. I'm glad to see I am not alone in this category, no matter how small the minority percentage calculates to be.
_________________
Paul

[CountryBoy]

Hope this finds you well. Could you please clarify for me why it is you do not have a higher foreign equity exposure?

All countries have problems, however in the last 3-5 yrs. the US has developed some specific ones that suggest I lighten up a bit on my VTSMX. The problems include:

The problems that the US economy faces are I believe secular or long term in nature.

ooo...The US is paying out too much money for oil and those dollars are devaluing the dollar. The foreign markets are the ones doing the manufacturing and developing. America’s primary industry is now the “financial services” industry. And so many of those Asian countries continue to have this notion about saving money rather than following the American way of spending money.

ooo...The nation is not willing or able to address serious problems of infrastructure such as roads, electric grids, building of levees (Katrina), education, and of course the disarray and dominance of the financial services in our economy. The three card monte scheme of subprime CDO's, etc. rolls on.

ooo...Our political system has some very fundamental dysfunctional aspects to it; corporate interests are entrenched for the foreseeable future and payments for unmanageable debt and deficits will continue for a very long time.

ooo...Other nations are increasingly able to find and make markets independent of the US market. Some countries prefer to deal in their own sphere, be it Asian or other, for different economic, political, and cultural reasons. As a result the degree of coupling decreases with time. Since oil rich countries do not want to invest all their growing wealth in one nation (i.e. treasury bills, etc.) they must needs find other countries that are not coupled with the West.

ooo...We are a wonderful country with a wonderful history. But that was then and these conditions I cite are now and for the foreseeable future.

ooo...I do not think this country is going to turn around within 5-15 yrs anymore than an aircraft carrier can turn on a dime.

I think I made a serious mistake to have put so much money in VTSMX and so little in international. I should be at 50% but I lack the self-confidence to do so and so am a sheep following the Diehard orthodoxy re international allocation.

Since you travel or work abroad and are so well read, I of course value your perspective.

Thanks.