Looking for Stock Allocation Article - Home Bias and Currency Risk

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Dominic
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Looking for Stock Allocation Article - Home Bias and Currency Risk

Post by Dominic » Sun Mar 04, 2018 8:08 pm

I recall an article (white paper or blog post, maybe) that suggested a strategy for balancing currency risk with the need to diversify globally. Basically, the gist was that you'd put 1/3 of your equities in your home country, and the remaining 2/3 at market cap weight. From what I remember, this strategy provided a good balance between avoiding home bias and avoiding currency risk in most countries.

Does anyone know where I can find the original source for this claim?

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BuyAndHoldOn
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Re: Looking for Stock Allocation Article - Home Bias and Currency Risk

Post by BuyAndHoldOn » Sun Mar 04, 2018 9:07 pm

I didn't find the precise numbers upon initial search. Saw references to David Swenson of Yale in a few places.

What is your home country? (I am assuming non-US, or else Global equities already keep a fair amount in your home currency).

Dominic
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Re: Looking for Stock Allocation Article - Home Bias and Currency Risk

Post by Dominic » Sun Mar 04, 2018 9:16 pm

BuyAndHoldOn wrote:
Sun Mar 04, 2018 9:07 pm
I didn't find the precise numbers upon initial search. Saw references to David Swenson of Yale in a few places.

What is your home country? (I am assuming non-US, or else Global equities already keep a fair amount in your home currency).
I'm in the US, but I was interested in reading this article (assuming it exists) to learn more about weighting home vs. abroad.

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Peculiar_Investor
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Re: Looking for Stock Allocation Article - Home Bias and Currency Risk

Post by Peculiar_Investor » Sun Mar 04, 2018 9:49 pm

Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams

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spdoublebass
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Re: Looking for Stock Allocation Article - Home Bias and Currency Risk

Post by spdoublebass » Mon Mar 05, 2018 8:55 pm

I think you are looking for this:

https://finpage.blog/2017/03/25/investi ... ld-part-3/

That's part 3, parts 1 and 2 are easily found there as well.

I think it was Siamond who posted it originally. Then Aj76er I think tossed it my way. I really can't remember.
Resist much, obey little.

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