What's your U.S. : International ratio?

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What's your U.S. : International ratio?

100:0
31
5%
80:20
105
16%
70:30
154
23%
60:40
115
17%
60:40
115
17%
50:50
119
18%
40:60
10
1%
30:70
10
1%
20:80
12
2%
 
Total votes: 671

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Tyrobi
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Re: What's your U.S. : International ratio?

Post by Tyrobi » Sat Jan 20, 2018 10:36 am

Target: 70/30

Actual: 74/26

Need to buy more VTIAX to get back in line.
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Tycoon
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Re: What's your U.S. : International ratio?

Post by Tycoon » Sat Jan 20, 2018 10:51 am

6% international as of this morning. There is a 95% chance it'll be 0% come Tuesday afternoon. I've pretty much convinced myself that we don't need international exposure to meet our goals.
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columbia
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Re: What's your U.S. : International ratio?

Post by columbia » Sat Jan 20, 2018 11:05 am

Around 25% right now. I plan to let that float where it goes and not worry about rebalancing within us vs intl.

vested1
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Re: What's your U.S. : International ratio?

Post by vested1 » Sat Jan 20, 2018 11:22 am

Rebalanced the entire portfolio yesterday as it had drifted higher than bands allowed toward equities. 17% of stocks in international, 60/40 stocks to bonds 2 years into retirement. Zero international bonds. International stocks 8.23% of portfolio.

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whodidntante
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Re: What's your U.S. : International ratio?

Post by whodidntante » Sat Jan 20, 2018 11:28 am

jhfenton wrote:
Sat Jan 20, 2018 8:30 am
We're 50/50 U.S./ex-US with a heavy small-cap tilt on both sides and an extra tilt toward emerging markets.
Same.

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Re: What's your U.S. : International ratio?

Post by herpfinance » Sat Jan 20, 2018 11:49 am

Market cap-weighted, so fairly close to 50:50.
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oldzey
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Re: What's your U.S. : International ratio?

Post by oldzey » Sat Jan 20, 2018 12:10 pm

stemikger wrote:
Sat Jan 20, 2018 7:57 am
100-0

All U.S. Portfolio! I followed Jack's advice and get my international through the S&P or Total Market Index. The accidental tourist if you will.
+1 same here.
"The broker said the stock was 'poised to move.' Silly me, I thought he meant up." ― Randy Thurman

22twain
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Re: What's your U.S. : International ratio?

Post by 22twain » Sat Jan 20, 2018 12:16 pm

I’m at 70:30 because my overwhelmingly dominant stock investment is the CREF Stock account in my 403b plan at TIAA. It has that ratio. I’ve never considered worth the trouble to change it by switching to separate funds for domestic and international.
My investing princiPLEs do not include absolutely preserving princiPAL.

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Re: What's your U.S. : International ratio?

Post by bgf » Sat Jan 20, 2018 12:28 pm

oldzey wrote:
Sat Jan 20, 2018 12:10 pm
stemikger wrote:
Sat Jan 20, 2018 7:57 am
100-0

All U.S. Portfolio! I followed Jack's advice and get my international through the S&P or Total Market Index. The accidental tourist if you will.
+1 same here.
Huh. So how much US exposure do you reckon you'd get by investing in Toyota, Samsung, Tencent, Mercedes Benz, etc. in their currencies?
“TE OCCIDERE POSSUNT SED TE EDERE NON POSSUNT NEFAS EST"

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zaboomafoozarg
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Re: What's your U.S. : International ratio?

Post by zaboomafoozarg » Sat Jan 20, 2018 1:01 pm

I miss polls.

60/40

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nisiprius
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Re: What's your U.S. : International ratio?

Post by nisiprius » Sat Jan 20, 2018 1:12 pm

Within stocks, 76% U.S., 24% international. With bonds, 100% U.S.

Years of reading the forum led me to gradually nudge my allocation within stocks from 20% international up to about 25% international, over a time period of about a decade. Yes--led me to engage in bad market timing, because I upped the allocation just as international stocks entered a period of underperformance. Oh, well.

When I started, I had accidentally let my stock allocation be 20.4% international because I'd ignored an international stock allocation in one of my mutual funds, and Vanguard's portfolio analysis tool dinged me for having too much international (they had programmed in 20% as a maximum). Then for many year it would ding me if my allocation ever fell below 20%. The former recommended maximum had become the recommended minimum. I think currently it is dinging me for having less than 30%.

I hate that.

Good, bad, or indifferent, I know of nothing objective or rational that would lead anyone to have a significantly different allocation today than they would have had in, say, 1990. Whatever made sense then still makes sense now. Reasons that are sometimes given are transparently rationalizations, not objective rationales.
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Re: What's your U.S. : International ratio?

Post by triceratop » Sat Jan 20, 2018 1:15 pm

nisiprius wrote:
Sat Jan 20, 2018 1:12 pm
Within stocks, 76% U.S., 24% international. With bonds, 100% U.S.

Years of reading the forum led me to gradually nudge my allocation within stocks from 20% international up to about 25% international, over a time period of about a decade.

When I started, I had accidentally let my stock allocation be 20.4% international because I'd ignored an international stock allocation in one of my mutual funds, and Vanguard's portfolio analysis tool dinged me for having too much international (they had programmed in 20% as a maximum). Then for many year it would ding me if my allocation ever fell below 20%. The former recommended maximum had become the recommended minimum. I think currently it is dinging me for having less than 30%.

I hate that.

Good, bad, or indifferent, I know of nothing objective or rational that would lead anyone to have a significantly different allocation today than they would have had in, say, 1990. Whatever made sense then still makes sense now. Reasons that are sometimes given are transparently rationalizations, not objective rationales.
Sure there are rational reasons. As an example, I was not alive in 1990.

;)

To the OP: I am market weight US/international.
"To play the stock market is to play musical chairs under the chord progression of a bid-ask spread."

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vitaflo
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Re: What's your U.S. : International ratio?

Post by vitaflo » Sat Jan 20, 2018 1:35 pm

nisiprius wrote:
Sat Jan 20, 2018 1:12 pm
Good, bad, or indifferent, I know of nothing objective or rational that would lead anyone to have a significantly different allocation today than they would have had in, say, 1990. Whatever made sense then still makes sense now. Reasons that are sometimes given are transparently rationalizations, not objective rationales.
1990 is an interesting year to pick given that the US market cap was much lower than it is now (closer to 30%). Of course this was due to the Japanese market going bananas but certainly if one's objective was to have a market cap weight of international, then the rational thing to do from 1990 to today would be to decrease international exposure from ~70% to ~50% correct? 20% seems like a significant difference to me.

palaheel
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Re: What's your U.S. : International ratio?

Post by palaheel » Sat Jan 20, 2018 2:12 pm

I'm 50/40/10 US/Developed International/Emerging. I allocate with the market weights, though within each segment I tilt to small and value.
Markets crash. Markets recover. Inflation takes your money FOREVER.

FrederickTheWise
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Re: What's your U.S. : International ratio?

Post by FrederickTheWise » Sat Jan 20, 2018 2:26 pm

100/0 US/International

Yes I have home country bias. But when your home country happens to have the world's strongest economy and infrastructure, that is okay. I am a relatively new boglehead and have read many of the arguments for and against international. I respect those who feel the need to diversify with international, but for me personally, living in the US, I don't think it is necessary. I'd rather keep it simple with one stock fund VTSAX and honestly it helps me sleep better at night not worrying too much about what is going on across the ponds and how it will affect my investments. One country is enough to worry about as it is.

Only time will tell if having no international will be better or not. But as has been mentioned before, it probably will not make much difference in the end, as long as we all keep our costs low and stay the course.
Two Fund Portfolio - Total Stock Market Index (VTSAX) & Intermediate-term Bond Index (VBILX). Home country bias and proud of it.

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Re: What's your U.S. : International ratio?

Post by pokebowl » Sat Jan 20, 2018 4:16 pm

This community is heavily divided on the proper international/US split. The horse has been beat so much, its become glue. I've learned to let the markets dictate this type of thing and hold everything at market weights. Currently thats about 50/50 US/World. :beer

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stemikger
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Re: What's your U.S. : International ratio?

Post by stemikger » Sat Jan 20, 2018 4:20 pm

FrederickTheWise wrote:
Sat Jan 20, 2018 2:26 pm
100/0 US/International

Yes I have home country bias. But when your home country happens to have the world's strongest economy and infrastructure, that is okay. I am a relatively new boglehead and have read many of the arguments for and against international. I respect those who feel the need to diversify with international, but for me personally, living in the US, I don't think it is necessary. I'd rather keep it simple with one stock fund VTSAX and honestly it helps me sleep better at night not worrying too much about what is going on across the ponds and how it will affect my investments. One country is enough to worry about as it is.

Only time will tell if having no international will be better or not. But as has been mentioned before, it probably will not make much difference in the end, as long as we all keep our costs low and stay the course.
+1

Well said. It has been over 23 years for me without international. In the long term it really will not be a deal breaker, but keeping costs low and stay the course will.
Last edited by stemikger on Sat Jan 20, 2018 4:21 pm, edited 1 time in total.
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Re: What's your U.S. : International ratio?

Post by Big Dog » Sat Jan 20, 2018 4:21 pm

100-0

pop77
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Re: What's your U.S. : International ratio?

Post by pop77 » Sat Jan 20, 2018 5:00 pm

stemikger wrote:
Sat Jan 20, 2018 7:57 am
100-0

All U.S. Portfolio! I followed Jack's advice and get my international through the S&P or Total Market Index. The accidental tourist if you will.
I disagree with Jack on this one. What your are missing is international companies selling into US markets. Think Nestle, UniLever, Diageo, Samsung , Intercontinental Hotels and many other products most US consumers use.

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oldzey
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Re: What's your U.S. : International ratio?

Post by oldzey » Sat Jan 20, 2018 5:08 pm

bgf wrote:
Sat Jan 20, 2018 12:28 pm
oldzey wrote:
Sat Jan 20, 2018 12:10 pm
stemikger wrote:
Sat Jan 20, 2018 7:57 am
100-0

All U.S. Portfolio! I followed Jack's advice and get my international through the S&P or Total Market Index. The accidental tourist if you will.
+1 same here.
Huh. So how much US exposure do you reckon you'd get by investing in Toyota, Samsung, Tencent, Mercedes Benz, etc. in their currencies?
I'm with Jack: Here's Why Jack Bogle Doesn't Like Investing In Foreign Markets
"The broker said the stock was 'poised to move.' Silly me, I thought he meant up." ― Randy Thurman

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Re: What's your U.S. : International ratio?

Post by bgf » Sat Jan 20, 2018 6:32 pm

oldzey wrote:
Sat Jan 20, 2018 5:08 pm
bgf wrote:
Sat Jan 20, 2018 12:28 pm
oldzey wrote:
Sat Jan 20, 2018 12:10 pm
stemikger wrote:
Sat Jan 20, 2018 7:57 am
100-0

All U.S. Portfolio! I followed Jack's advice and get my international through the S&P or Total Market Index. The accidental tourist if you will.
+1 same here.
Huh. So how much US exposure do you reckon you'd get by investing in Toyota, Samsung, Tencent, Mercedes Benz, etc. in their currencies?
I'm with Jack: Here's Why Jack Bogle Doesn't Like Investing In Foreign Markets
that didn't answer my question, and i think mr. bogle is dead wrong when it comes to his jingoistic 'explanation' for why he only invests in the US.
“TE OCCIDERE POSSUNT SED TE EDERE NON POSSUNT NEFAS EST"

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Re: What's your U.S. : International ratio?

Post by drk » Sat Jan 20, 2018 6:42 pm

kpanghmc wrote:
Fri Mar 09, 2007 1:50 pm
Just curious how other Bogleheads have their U.S.:International ratio set up. I'm currently at 2:1 but I'm tempted to cap weight and go 1:1. After all, if I believe in cap weighting my U.S. equities, why not cap weight my global equities as well?
The poll results have two entries for 60:40, and my brain doesn't like it.

Broken Man 1999
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Re: What's your U.S. : International ratio?

Post by Broken Man 1999 » Sat Jan 20, 2018 6:53 pm

We are currently at 80% US Equities and 20% International.
I might bump International up to 25% to 30% over time. Or, I might not. No strong feelings either way.

Broken Man 1999
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Re: What's your U.S. : International ratio?

Post by MnD » Sat Jan 20, 2018 7:02 pm

Whatever the US/ex-US ratio is for all-country all-cap world index at any given time.
Very easy to not try to be smarter than Mr. Market - and no rebalancing! :beer

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oldzey
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Re: What's your U.S. : International ratio?

Post by oldzey » Sat Jan 20, 2018 7:14 pm

bgf wrote:
Sat Jan 20, 2018 6:32 pm
oldzey wrote:
Sat Jan 20, 2018 5:08 pm
bgf wrote:
Sat Jan 20, 2018 12:28 pm
oldzey wrote:
Sat Jan 20, 2018 12:10 pm
stemikger wrote:
Sat Jan 20, 2018 7:57 am
100-0

All U.S. Portfolio! I followed Jack's advice and get my international through the S&P or Total Market Index. The accidental tourist if you will.
+1 same here.
Huh. So how much US exposure do you reckon you'd get by investing in Toyota, Samsung, Tencent, Mercedes Benz, etc. in their currencies?
I'm with Jack: Here's Why Jack Bogle Doesn't Like Investing In Foreign Markets
that didn't answer my question, and i think mr. bogle is dead wrong when it comes to his jingoistic 'explanation' for why he only invests in the US.
My apologies for not addressing your question properly, bgf.

I don't happen to invest in individual stocks, therefore I don't pay attention to how Toyota, Samsung, Tencent, Mercedes Benz, etc. perform individually.

However, as 100% of my equity investments lie solely in Total Stock Market Index Funds, I do care about how Total U.S. Stock Market Index Funds perform versus Total International Stock Market Index Funds.

Let's take a look at past performance over the past 20 years of each fund:

The inception date of Vanguard Total Stock U.S. Stock Market Index Fund (VTSMX) was 4/27/1992.

The inception date of Vanguard Total International Stock Index Fund (VGTSX) was 4/29/1996.

Per Morningstar, as of 1/19/2018, if you had invested $10,000 in both funds on 4/29/1996, you would currently have $64,465 in your Total Stock U.S. Stock Market Index Fund, which would be more than double as much as the $31,221 in your Total International Stock Index Fund.

Image

Of course, past performance does not indicate future performance.

Best,
oldzey
"The broker said the stock was 'poised to move.' Silly me, I thought he meant up." ― Randy Thurman

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Re: What's your U.S. : International ratio?

Post by aj76er » Sat Jan 20, 2018 7:19 pm

I start with world cap weight and then tilt to US (I think most folks here do the opposite). My AA is a fixed 67% World/33% US.

I accomplish this by holding a total US mkt find and a total exUS market fund. Currently this comes to about 68% total US / 32% total exUS when implemented in this manner.

Forum member Saimond's excellent work influenced my thinking about this:

https://finpage.blog/2017/03/18/investi ... ld-part-1/
https://finpage.blog/2017/03/25/investi ... ld-part-2/
https://finpage.blog/2017/03/25/investi ... ld-part-3/
"Buy-and-hold, long-term, all-market-index strategies, implemented at rock-bottom cost, are the surest of all routes to the accumulation of wealth" - John C. Bogle

palaheel
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Re: What's your U.S. : International ratio?

Post by palaheel » Sat Jan 20, 2018 8:39 pm

Going back further shows a less-clear picture. Comparing (blue) Vanguard International Growth, VWIGX, (an active fund, and hardly index based, but one of the oldest international funds that I could find), and the (yellow) Vanguard 500 Index (VFINX) shows that from 1981 through 1996 International was ahead. After that the S&P took over until they tied roughly from 2007 to 2011.

Image
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oldzey
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Re: What's your U.S. : International ratio?

Post by oldzey » Sat Jan 20, 2018 9:05 pm

Deleted
Last edited by oldzey on Sat Jan 20, 2018 9:11 pm, edited 1 time in total.
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Dave55
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Re: What's your U.S. : International ratio?

Post by Dave55 » Sat Jan 20, 2018 9:07 pm

65% US/35% International

Dave

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dccboone
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Re: What's your U.S. : International ratio?

Post by dccboone » Sat Jan 20, 2018 11:07 pm

65% U.S. / 35% International

Stick5vw
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Re: What's your U.S. : International ratio?

Post by Stick5vw » Sat Jan 20, 2018 11:37 pm

My target is to follow the allocations of the MSCI ACWI index - so roughly 50% US / 40% Intl / 10% EM.

I am investing mostly through ITOT & VXUS which both pretty much cover the full equity market. However, there is an allocation to international through OAKIX (about 15% of the EQ portfolio) which may tilt things slightly depending on how they are invested however.

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randomizer
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Re: What's your U.S. : International ratio?

Post by randomizer » Sat Jan 20, 2018 11:47 pm

50:50 (for simplicity, trying to closely approximate world cap weighting with an easy-to-remember ratio, even though the true weight should really be 52:48).
75:25 — HODL the course!

binvesting
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Re: What's your U.S. : International ratio?

Post by binvesting » Sat Jan 20, 2018 11:52 pm

60:40

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Doom&Gloom
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Re: What's your U.S. : International ratio?

Post by Doom&Gloom » Sun Jan 21, 2018 12:01 am

66.6:33.3

Due to requirement to use at least five characters. LOL!

kerplunk
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Re: What's your U.S. : International ratio?

Post by kerplunk » Sun Jan 21, 2018 12:06 am

Me:

50% US Total Stock Market
50% US Small Cap Value

(No International)


What I recommended for my retired father:

40% US Total Stock Market
10% International Total Stock Market
50% US Total Bond Market

Alchemist
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Re: What's your U.S. : International ratio?

Post by Alchemist » Sun Jan 21, 2018 1:07 am

100% U.S.

When Buffet and Bogle agree on something; it is hard to disagree with them. Demographics and geopolitical considerations seal the deal for me.

It has worked out over my investing lifetime thus far, we shall see if that continues to be the case (I'm 30).

Chris K Jones
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Re: What's your U.S. : International ratio?

Post by Chris K Jones » Sun Jan 21, 2018 1:48 am

76%:24%

DrGoogle2017
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Re: What's your U.S. : International ratio?

Post by DrGoogle2017 » Sun Jan 21, 2018 2:28 am

Probably 80/20.

hiddenace
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Re: What's your U.S. : International ratio?

Post by hiddenace » Sun Jan 21, 2018 3:55 am

I'm...A little different... :twisted:

Stocks (60 percent allocation):

50 percent US ex-S&P 500 (VXF)
25 percent Emerging Markets (VWO)
25 percent International small-caps (VSS)

Bonds (40 percent allocation):
50 percent G fund
25 percent total bond ex-US (BNDX)
25 percent emerging markets bonds (VWOB)

JustinR
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Re: What's your U.S. : International ratio?

Post by JustinR » Sun Jan 21, 2018 5:44 am

50/50

Anyone who doesn't is perpetuating home country bias.

metacritic
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Re: What's your U.S. : International ratio?

Post by metacritic » Sun Jan 21, 2018 5:55 am

But what makes you claim your home country has the world's strongest economy and infrastructure? Many countries are experiencing stronger growth even if they have (for now) smaller economies. Many have better infrastructure it seems to me.

And as for noting that one country is enough to worry about -- might you not prefer to worry about no countries because you are diversified? Just as you don't worry about any single stock because you own the market?

I'm a US citizen and resident, btw. But I travel to Africa, Asia, and Europe about 30% of my time for work and holiday. I"m amazed at how diminished US companies' presence is in Africa and Asia in particular from even 10 years ago.
FrederickTheWise wrote:
Sat Jan 20, 2018 2:26 pm
100/0 US/International

Yes I have home country bias. But when your home country happens to have the world's strongest economy and infrastructure, that is okay. I am a relatively new boglehead and have read many of the arguments for and against international. I respect those who feel the need to diversify with international, but for me personally, living in the US, I don't think it is necessary. I'd rather keep it simple with one stock fund VTSAX and honestly it helps me sleep better at night not worrying too much about what is going on across the ponds and how it will affect my investments. One country is enough to worry about as it is.

Only time will tell if having no international will be better or not. But as has been mentioned before, it probably will not make much difference in the end, as long as we all keep our costs low and stay the course.

FrederickTheWise
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Re: What's your U.S. : International ratio?

Post by FrederickTheWise » Sun Jan 21, 2018 6:39 am

metacritic wrote:
Sun Jan 21, 2018 5:55 am
But what makes you claim your home country has the world's strongest economy and infrastructure? Many countries are experiencing stronger growth even if they have (for now) smaller economies. Many have better infrastructure it seems to me.

And as for noting that one country is enough to worry about -- might you not prefer to worry about no countries because you are diversified? Just as you don't worry about any single stock because you own the market?

I'm a US citizen and resident, btw. But I travel to Africa, Asia, and Europe about 30% of my time for work and holiday. I"m amazed at how diminished US companies' presence is in Africa and Asia in particular from even 10 years ago.



A quick Google search resulted with the following: www.investopedia.com/articles/investing ... nomies.asp


True, this could be debated. But I think most people would agree the US has the strongest economy and infrastructure. That is why about 50% of the world market weight is in the US alone. No other country even comes close. I firmly believe that America still is the land of opportunity and prosperity that it has been known for. Call me naive or biased or nationalistic, but I am happy to live here and invest my money it its economy.

I see your point about not worrying about a single stock and so we diversify. Fair enough. However, the analogy is not a complete one to one since neither the total stock market index nor the international one deviates as much as a single stock may on a given single day. Both indices experience gradual changes while single stocks tend to make huge jumps. I simply have decided that the US market is enough diversification for me to achieve my goals. If others want international that is okay. I even recommend international to my friends without hesitation. Like I said before. It probably won't make much difference in the end, that is, as long as we keep our costs low and stay the course.

I wish you all the best.
Two Fund Portfolio - Total Stock Market Index (VTSAX) & Intermediate-term Bond Index (VBILX). Home country bias and proud of it.

KarenC
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Re: What's your U.S. : International ratio?

Post by KarenC » Sun Jan 21, 2018 6:58 am

zaboomafoozarg wrote:
Sat Jan 20, 2018 1:01 pm
I miss polls.

60/40
I was just thinking the same thing. 60/40 (100/0 fixed)
"How much you know is less important than how clearly you understand where the borders of your ignorance begin." — Jason Zweig

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stemikger
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Re: What's your U.S. : International ratio?

Post by stemikger » Sun Jan 21, 2018 7:25 am

pop77 wrote:
Sat Jan 20, 2018 5:00 pm
stemikger wrote:
Sat Jan 20, 2018 7:57 am
100-0

All U.S. Portfolio! I followed Jack's advice and get my international through the S&P or Total Market Index. The accidental tourist if you will.
I disagree with Jack on this one. What your are missing is international companies selling into US markets. Think Nestle, UniLever, Diageo, Samsung , Intercontinental Hotels and many other products most US consumers use.
So why would that make a difference. We spend our money in U.S. dollars and what about currency risk? After all is said and done, I don't see international doing better in the long term. They simply do not have the same set of rules and regulations when it comes to investing for the average person. The U.S. is the safest place to keep your money due to those rules, market risk is enough. Why take on sovereign risk and currency risk.

The S&P and Total Market derive something like 50% of their profits from overseas, so I already see myself as an international investor without taking on the added risk I mentioned above.

In the end of I am practicing home country bias, so be it. It is what keeps me Staying the Course and in the long run that will be what determines whether I am going to retire with dignity. It has been over 23 years without investing in international, quite frankly I will not comfortable doing it at this point. For the record, I am 53.
Last edited by stemikger on Sun Jan 21, 2018 7:28 am, edited 1 time in total.
Choose Simplicity ~ Stay the Course!! ~ Press on Regardless!!!

craigers
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Location: Vermont

Re: What's your U.S. : International ratio?

Post by craigers » Sun Jan 21, 2018 7:28 am

I am 65/35 stocks bonds with 25% of stocks in foreign

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stemikger
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Re: What's your U.S. : International ratio?

Post by stemikger » Sun Jan 21, 2018 8:20 am

On a side note, I love how Bogleheads are such independent thinkers (which is a good thing).

They even disagree with the our leader! I have no problem with disagreeing with Jack, but IMHO the chapter in Common Sense on Mutual Funds on international investing just makes so much sense that all the arguments against it, don't make as much sense for me. Not that it matters, but so far Jack's advice has worked out wonderful for the past 23 years. 'It may not in the future but the main reason why I invest the way I do is because it enables me to stay the course.

All in the Vanguard Balanced Index Fund and never look back!
Choose Simplicity ~ Stay the Course!! ~ Press on Regardless!!!

Global100
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Re: What's your U.S. : International ratio?

Post by Global100 » Sun Jan 21, 2018 8:50 am

Good to read others' positions.
Last edited by Global100 on Sun Jan 21, 2018 8:30 pm, edited 1 time in total.

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jhfenton
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Re: What's your U.S. : International ratio?

Post by jhfenton » Sun Jan 21, 2018 9:05 am

Large Japanese companies in the 80's and 90's made a lot of money selling to the U.S., Europe, and the rest of the world. But that didn't mean that investors in the Japanese stock market were getting meaningful international diversification from owning those companies. Japanese investors with a home country bias paid the price.

I couldn't sleep at night with a 100% U.S. portfolio, at least not unless I significantly lowered my allocation to equities. Whether it's an illusion or not, I feel safer spreading my investments around the world, even with investments that, in isolation, might seem riskier (emerging markets and ex-US small caps).

timmy
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Re: What's your U.S. : International ratio?

Post by timmy » Sun Jan 21, 2018 11:07 am

EQUITY 50/50, Ideal world we'd be 100% VT ETF. With our choices at work, we try to replicate it.

BONDS = All US GOV ... 5 to 7 year avg. duration

RNJ
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Re: What's your U.S. : International ratio?

Post by RNJ » Sun Jan 21, 2018 2:36 pm

50/50 as policy, but have let international outstrip US (let EM & Int Small run), so more like 47/53 now. Still within rebalancing bands.

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