Search found 652 matches

by Lauretta
Sat Jun 09, 2018 1:26 pm
Forum: Personal Consumer Issues
Topic: daughter wants a college transfer?
Replies: 65
Views: 5072

Re: daughter wants a college transfer?

Cornell is a great school, but has notorious issues with grade deflation . If she is really interested in med school, transfer to a different (cheaper?) school. A “C” in Cornell organic chemistry (which might be an “A” elsewhere) won’t cut it. Things have progressed so far in academia that we talk ...
by Lauretta
Sat Jun 09, 2018 11:10 am
Forum: Investing - Theory, News & General
Topic: Jack Bogle on Fox Business Channel Friday June 8
Replies: 65
Views: 5439

Re: Jack Bogle on Fox Business Channel Friday June 8

Another 5 minutes from the interview. https://m.youtube.com/watch?v=RC__VrsfdpM at 1:42 he says 'there will be opportunities - we have seen them in the last 25 yrs - to get out and get back in'. I am not sure whether he is advocating market timing, perhaps based on extreme valuations (as he elsewhe...
by Lauretta
Sat Jun 09, 2018 1:24 am
Forum: Investing - Theory, News & General
Topic: Jack Bogle on Fox Business Channel Friday June 8
Replies: 65
Views: 5439

Re: Jack Bogle on Fox Business Channel Friday June 8

Another 5 minutes from the interview. https://m.youtube.com/watch?v=RC__VrsfdpM at 1:42 he says 'there will be opportunities - we have seen them in the last 25 yrs - to get out and get back in'. I am not sure whether he is advocating market timing, perhaps based on extreme valuations (as he elsewhe...
by Lauretta
Sat Jun 09, 2018 1:16 am
Forum: Investing - Help with Personal Investments
Topic: [EU] Looking for the European Boglehead way to go: Findings & Discussion
Replies: 5
Views: 507

Re: [EU] Looking for the European Boglehead way to go: Findings & Discussion

RME wrote:
Fri Jun 08, 2018 6:05 pm
The European Boglehead community is on the search for the perfect country asset allocation for stocks and bonds.
Can you explain what you mean by a
perfect
asset allocation?
by Lauretta
Tue Jun 05, 2018 3:18 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Financial Illiteracy’s High Cost
Replies: 30
Views: 3802

Re: Larry Swedroe: Financial Illiteracy’s High Cost

This finding: There was no evidence that, overall, households with higher financial literacy choose riskier portfolios. Instead, their risk exposure varies systematically with market conditions, allocating more to risky assets when they have higher expected returns. A 1% increase in the expected exc...
by Lauretta
Sun Jun 03, 2018 2:09 pm
Forum: Investing - Theory, News & General
Topic: What's wrong with this critique of indexing?
Replies: 124
Views: 8678

Re: What's wrong with this critique of indexing?

Can you please point out at which point the following reasoning is wrong? 1) If one believes in the EMH and in common asset pricing models, then one accepts the idea that all information about firms in the stock market is baked into their current prices, so that for every stock you should expect th...
by Lauretta
Sat Jun 02, 2018 3:16 pm
Forum: Investing - Theory, News & General
Topic: What's wrong with this critique of indexing?
Replies: 124
Views: 8678

Re: What's wrong with this critique of indexing?

If I have "$5 billion" worth of News Corporation stock and I actually try to sell it, there may not be anybody who wants to buy it at that price. In order to clear $5 billion on the deal, I may need to find someone willing to pay $5 billion for a number of shares of stock that I thought was worth, ...
by Lauretta
Thu May 31, 2018 2:47 pm
Forum: Investing - Theory, News & General
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 5438

Re: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

The more difficult issue would be redenominating Italian government debt into New Lira. Not sure what the legal position would be. Effectively that would be an exchange of c EUR 2 trillion of bonds for bonds paying in New Lira. Holders would resist. Yes I think there are several legal issues, appar...
by Lauretta
Thu May 31, 2018 8:42 am
Forum: Investing - Theory, News & General
Topic: Should financials stocks be included when implementing a quantitative value strategy?
Replies: 11
Views: 680

Re: Should financials stocks be included when implementing a quantitative value strategy?

There is more developed research on what value might mean, results even with their own 5-factor model, profitability/quality factors that give value a different context now especially with respect to thinking value as a proxy for distress risk, etc. on the subject of the quality factor, something I...
by Lauretta
Thu May 31, 2018 7:26 am
Forum: Investing - Theory, News & General
Topic: Should financials stocks be included when implementing a quantitative value strategy?
Replies: 11
Views: 680

Re: Should financials stocks be included when implementing a quantitative value strategy?

I'm not a believer in the idea that value style strategies offer anything special. That being said, if you are one of the followers of Fama-French style "Value" they explicitly said: ...We exclude financial firms because the high leverage that is normal for these firms probably does not have the sa...
by Lauretta
Thu May 31, 2018 7:10 am
Forum: Investing - Theory, News & General
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 5438

Re: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

Being completely selfish, as a frequent traveler to Europe I hope the Eurozone expands to cut down on my foreign currency collection. :twisted: Having travelled in pre-Euro Europe, it was fun to bring Italian banknotes with lots of zeroes on them to give my siblings / cousins as gifts upon my retur...
by Lauretta
Thu May 31, 2018 5:52 am
Forum: Investing - Theory, News & General
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 5438

Re: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

Valuethinker wrote:
Thu May 31, 2018 5:28 am
But Lisbon is definitely the new hipster heaven.
Was there at new year's eve. Loved the place; beautiful architecture, particularly the manuelino style, light and fluid. :o
I was told that house prices have already gone up a lot in Lisbon too - but I didn't really look into that.
by Lauretta
Thu May 31, 2018 4:19 am
Forum: Investing - Theory, News & General
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 5438

Re: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

If I were Italian, I'd be moving some money outside the country right now, one way or the other. Someone said on an Italian forum that apparently if you move money to a German bank and the euro ceases to exist, you will not get automatically German marks - rather, you would get the currency of your...
by Lauretta
Wed May 30, 2018 3:39 pm
Forum: Investing - Theory, News & General
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 5438

Re: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

leaves open the question of what currency risk is being hedged if the Euro were to break up. Perhaps the returns would then be hedged against a new Euro for Germany and other core member states, and this would almost certainly appreciate against the new Lira, Drachma... Precisely, that's what I hav...
by Lauretta
Tue May 29, 2018 7:30 pm
Forum: Investing - Theory, News & General
Topic: Should financials stocks be included when implementing a quantitative value strategy?
Replies: 11
Views: 680

Re: Should financials stocks be included when implementing a quantitative value strategy?

Fama includes financials in his academic factors, but they are excluded in DFA funds. I assume it's because someone ran the data and growth financials didn't beat growth value stocks in backtesting. Yes and I've seen several academic papers on value investing that stated that they exclude financial...
by Lauretta
Tue May 29, 2018 4:39 pm
Forum: Investing - Theory, News & General
Topic: What's wrong with this critique of indexing?
Replies: 124
Views: 8678

Re: What's wrong with this critique of indexing?

The market capitalization of a stock is not a constant. Market cap is constantly being created and destroyed in transactions, although in small increments. If I have "$5 billion" worth of News Corporation stock and I actually try to sell it, there may not be anybody who wants to buy it at that pric...
by Lauretta
Tue May 29, 2018 3:47 pm
Forum: Investing - Theory, News & General
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 5438

Re: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

Are us treasury bonds not available in Europe? I never understood why people would buy 0 or negative yield bonds when there were equally safe bonds for sale in the us with 10x the yield. Because shopkeepers in Europe don't price things in dollars. Why does that matter? I didn't say why don't they j...
by Lauretta
Tue May 29, 2018 3:39 pm
Forum: Investing - Theory, News & General
Topic: What's wrong with this critique of indexing?
Replies: 124
Views: 8678

Re: What's wrong with this critique of indexing?

(ThrustVectoring beat me to it while I was composing a psot. Here's the same point made in a different way). Let's make a set of wildly unrealistic simplifying assumptions. Suppose there are only two stocks in the stock market, Apple and News Corporation. Let's say their market capitalizations are ...
by Lauretta
Tue May 29, 2018 3:01 pm
Forum: Investing - Theory, News & General
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 5438

Re: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

Laurette, I'm from Belgium. I sold my shares in the iShares etf IEGA yesterday and couldn't be happier I bought a global bond etf Hedged to euro. I suggest you do the same or open up am account with your broker to buy dollars or us treasuries Hedged to euro. Yes, there are a couple of global bond E...
by Lauretta
Tue May 29, 2018 12:39 pm
Forum: Investing - Theory, News & General
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 5438

Re: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

Hi Lauretta, I'm also a bit skeptical about the Eurozone's long-term stability. So many moving parts but only one currency is going to create lots of shear force. Being from Austria, this also would directly affect me. I take it this way: having a stock-heavy globally diversified portfolio gives me...
by Lauretta
Tue May 29, 2018 10:38 am
Forum: Investing - Theory, News & General
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 5438

Re: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

My take is that markets can do unexpected things. If you think German Bonds are a riskless bet with potentially big upside for Italian investors, chances are that others are noticing that too, particularly the very large institutions. My guess is that this is all built into the price of German Bond...
by Lauretta
Tue May 29, 2018 10:33 am
Forum: Investing - Theory, News & General
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 5438

Re: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

My take is that markets can do unexpected things. If you think German Bonds are a riskless bet with potentially big upside for Italian investors, chances are that others are noticing that too, particularly the very large institutions. My guess is that this is all built into the price of German Bond...
by Lauretta
Tue May 29, 2018 9:45 am
Forum: Investing - Theory, News & General
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 5438

Re: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

Hi UK Boglehead here-been in the Italian position-sort of-Brexit seems to be happening! Not the same as leaving the Euro but a serious financial move nevertheless . Am also a Scot-independence nearly succeeded!-could have had to leave the pound. Where to invest as all the “fixed” points start to mo...
by Lauretta
Tue May 29, 2018 9:04 am
Forum: Investing - Theory, News & General
Topic: Should financials stocks be included when implementing a quantitative value strategy?
Replies: 11
Views: 680

Should financials stocks be included when implementing a quantitative value strategy?

One the one hand I heard from a value manager that financial stocks should not be included when screening for value stocks, but I didn't understand why (he just said their accounts are not meaningful). On the other hand I've seen that value Etfs such as Vanguard VVAL (listed in Europe) are overweigh...
by Lauretta
Tue May 29, 2018 6:26 am
Forum: Investing - Theory, News & General
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 5438

Re: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

bagle wrote:
Tue May 29, 2018 6:18 am
do you also have information about opening a simple bank account in Germany?
I haven't done it myself, but this source seems credible::

https://banks-germany.com/german-bank-a ... -residents
Thanks! :happy
by Lauretta
Tue May 29, 2018 5:39 am
Forum: Investing - Theory, News & General
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 5438

Re: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

If you want to buy German bunds, you can open an account directly with the Germany finance agency ("Finanzagentur") in Frankfurt. A Spanish colleague of mine did so during the height of the previous Euro crisis in 2012 by visiting their office, though they also gave him a form (in German only, as i...
by Lauretta
Tue May 29, 2018 5:31 am
Forum: Investing - Theory, News & General
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 5438

Re: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

Hold global stocks, and global bond funds. Maybe increase your emergency reserves and try to hold them in a Swiss or German bank account. Don't get cute. If this is a full blown crisis it will get a lot worse. If it's not, then Italian stocks and bonds will snap right back. Yes luckily my stocks ar...
by Lauretta
Mon May 28, 2018 10:38 am
Forum: Investing - Theory, News & General
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 5438

Re: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

A currency union is very different than a currency peg. The concept of devaluation doesn't really apply. It would take many years to leave the euro in an orderly, sane way - just as it took many years to enter it. If there is a same and orderly way to breakup the euro zone there is no need to do it...
by Lauretta
Mon May 28, 2018 9:57 am
Forum: Investing - Theory, News & General
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 5438

Re: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

Can you set up an Interactive Brokers account? I hold different currencies in it and the rates aren't bad - you can pick when you buy and sell the FX as well. I won't retire in the US so I use it to hold currency of where I will retire and buy ETFs listed in that market/currency. https://www.intera...
by Lauretta
Mon May 28, 2018 9:54 am
Forum: Investing - Theory, News & General
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 5438

Re: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

German 10-year bonds yield 0.4%. I don’t see what’s attractive about them. if you read my OP perhaps you will The point is that there is not really "a big upside possible" for these low-yield German bonds, and there is also a downside from inflation risk. What you call "upside" is really only the p...
by Lauretta
Mon May 28, 2018 9:21 am
Forum: Investing - Theory, News & General
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 5438

Re: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

Valuethinker wrote:
Mon May 28, 2018 9:18 am


Well that crisis has paused, for the moment as the President has refused to appoint him.
yes but now they want to impeach the president for this! It's a pretty crazy situation.
by Lauretta
Mon May 28, 2018 9:20 am
Forum: Investing - Theory, News & General
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 5438

Re: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

Could you not buy a stack of USD and hold them in a term deposit account paying more than the German Bonds outside Italy? I guess so; the problem is that if everything in the eurozone works out well and the euro appreciates relative to the dollar, I lose out, particularly since the USDX is pretty h...
by Lauretta
Mon May 28, 2018 8:26 am
Forum: Investing - Theory, News & General
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 5438

Re: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

A currency union is very different than a currency peg. The concept of devaluation doesn't really apply. It would take many years to leave the euro in an orderly, sane way - just as it took many years to enter it. Entry and exit are not symmetrical problems in any way. In both cases, you're transit...
by Lauretta
Mon May 28, 2018 8:23 am
Forum: Investing - Theory, News & General
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 5438

Re: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

German 10-year bonds yield 0.4%. I don’t see what’s attractive about them. if you read my OP perhaps you will I did read your OP. I just don’t see the attraction to a bond that pays an interest rate that’s nil, or even negative. Contrary to what you wrote about “no downside”, it can lose a lot of i...
by Lauretta
Mon May 28, 2018 7:28 am
Forum: Investing - Theory, News & General
Topic: Strengths/Weaknesses of Market Cap and Value Strategies
Replies: 21
Views: 2156

Re: Strengths/Weaknesses of Market Cap and Value Strategies

The point is that under one strategy the expectation is that things going up will continue going up (or that those going down will continue to go down), and the other strategy is expecting that things going down will start heading up (and the things heading up will start turning down). As far as I ...
by Lauretta
Mon May 28, 2018 5:32 am
Forum: Investing - Theory, News & General
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 5438

Re: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

Germany leaving the Euro and its own currency being devalued is also a possibility. Ongoing inflation in Italy is also an issue. Germany could also default on foreign creditors. New governments with different attitudes can always happen. Merkel won't be in power forever and is not as popular as in ...
by Lauretta
Mon May 28, 2018 5:27 am
Forum: Investing - Theory, News & General
Topic: Strengths/Weaknesses of Market Cap and Value Strategies
Replies: 21
Views: 2156

Re: Strengths/Weaknesses of Market Cap and Value Strategies

A "Momentum" investing strategy is one that selects based on a hope that some criteria will continue on the trend it's been on. A "Mean-reversion" investing strategy is one that selects based on a hope that some criteria that has strayed from it's prior course will revert back. I have some trouble ...
by Lauretta
Mon May 28, 2018 3:08 am
Forum: Investing - Theory, News & General
Topic: Strengths/Weaknesses of Market Cap and Value Strategies
Replies: 21
Views: 2156

Re: Strengths/Weaknesses of Market Cap and Value Strategies

Growth/Value or Momentum/Mean-Reversion are opposite strategies, but as I acknowledged in the post, people do try to combine aspects of them, and the modern factor version of this active strategy trying to combine them has echoes of the " GARP " investing strategy Peter Lynch popularized in decades...
by Lauretta
Mon May 28, 2018 12:58 am
Forum: Investing - Theory, News & General
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 5438

Re: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

German 10-year bonds yield 0.4%. I don’t see what’s attractive about them. if you read my OP perhaps you will I did read your OP. I just don’t see the attraction to a bond that pays an interest rate that’s nil, or even negative. Contrary to what you wrote about “no downside”, it can lose a lot of i...
by Lauretta
Mon May 28, 2018 12:48 am
Forum: Investing - Theory, News & General
Topic: Strengths/Weaknesses of Market Cap and Value Strategies
Replies: 21
Views: 2156

Re: Strengths/Weaknesses of Market Cap and Value Strategies

Value style strategies are essentially mean-reversion strategies buying stocks when there values fall, and trading them if/when their value rises. Momentum isn't just "complementary" it's essentially the opposite strategy, buying things as they rise and selling them when they fall. Well they are no...
by Lauretta
Sun May 27, 2018 12:35 pm
Forum: Investing - Theory, News & General
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 5438

Re: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

NoHeat wrote:
Sun May 27, 2018 12:16 pm
German 10-year bonds yield 0.4%. I don’t see what’s attractive about them.
if you read my OP perhaps you will
by Lauretta
Sun May 27, 2018 9:22 am
Forum: Investing - Theory, News & General
Topic: Strengths/Weaknesses of Market Cap and Value Strategies
Replies: 21
Views: 2156

Re: Strengths/Weaknesses of Market Cap and Value Strategies

Every strategy has strengths and weaknesses. People I respect often combine a market cap strategy and a value strategy. Such diversification can make sense, because of differences in strengths and weaknesses between strategies. When I refer to a value strategy, I mean a quantitative value strategy....
by Lauretta
Sun May 27, 2018 9:14 am
Forum: Investing - Theory, News & General
Topic: Strengths/Weaknesses of Market Cap and Value Strategies
Replies: 21
Views: 2156

Re: Strengths/Weaknesses of Market Cap and Value Strategies

... The following is some weaknesses of a market cap strategy: tend to own more of what's overpriced and less of what's underpriced; this leads to exposure to bubbles ... The following are some strengths of a value strategy: may have less sensitivity to bubbles. In the 2000 bear market, value had l...
by Lauretta
Sun May 27, 2018 7:35 am
Forum: Investing - Help with Personal Investments
Topic: [EU] Considering investing in 10Y Spanish bonds: Change my mind
Replies: 8
Views: 745

Re: [EU] Considering investing in 10Y Spanish bonds: Change my mind

Spain has somewhat higher govt debt to gdp around 100%. That is high but not as bad as others. The risk, which is remote, is that something happens such that Spain leaves the Euro. Perhaps precipitated by Greece leaving, after which other higher debt slower economies prefer to leave (Italy and Port...
by Lauretta
Sun May 27, 2018 6:34 am
Forum: Investing - Theory, News & General
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 5438

Re: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

Soros and others made billions against the Bank of England- The Aldwych beat Threadneedle St ( ;-) a reference to the location of Soros' alma mater, the LSE, vs. the Bank of England). yes, interestingly he studied philosophy there and was inspired by Karl Popper; it has occurred to me that Popper's...
by Lauretta
Sun May 27, 2018 6:20 am
Forum: Investing - Theory, News & General
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 5438

Re: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

I have long advocated for those residing in the lower credit rating (usually southern) Eurozone countries holding a global govt bond fund (hedged into Euros) to dilute the credit risk of the Italian and Spanish govt bond markets. Yes, I know and this makes sense, but my problem is precisely that I ...
by Lauretta
Sun May 27, 2018 4:24 am
Forum: Investing - Theory, News & General
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 5438

German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

I am from Italy and our next finance minister might be Paolo Savona, a well known eurosceptic (this is assuming the main parties and the president agree on the formation of the new government) https://www.nytimes.com/reuters/2018/05/23/business/23reuters-italy-politics-savona.html Savona has already...
by Lauretta
Fri May 25, 2018 5:28 am
Forum: Investing - Theory, News & General
Topic: If the US market cap was 5% instead of 52%, would the US vs International conversation change?
Replies: 40
Views: 2962

Re: If the US market cap was 5% instead of 52%, would the US vs International conversation change?

In the US vs International threads, there are often the same arguments repeated by the "home bias is ok if it's the US" crowd. Mostly that the US economy is awesome, efficient, and stable, while other countries are risky, corrupt, unstable, and not as awesome. Also, in the past US has outperformed ...
by Lauretta
Fri May 25, 2018 3:14 am
Forum: Investing - Theory, News & General
Topic: Theory: Total World Index a Sure Fire Win [VT/VTWSX]
Replies: 155
Views: 12842

Re: Theory: Total World Index a Sure Fire Win [VT/VTWSX]

Adding European or Japanese stocks to U.S. stocks you add currency risk, but probably not much if any political risk. Adding South America, China, India, and other emerging markets drastically increases the exposure to black swans caused by war, violent political changes, and government confiscatio...