INTERNATIONALS 20% of Equities or 20% of Portfolio?

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vineviz
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Re: INTERNATIONALS 20% of Equities or 20% of Portfolio?

Post by vineviz » Wed Oct 09, 2019 6:49 pm

visualguy wrote:
Wed Oct 09, 2019 6:08 pm
z3r0c00l wrote:
Wed Oct 09, 2019 6:05 pm
UpperNwGuy wrote:
Wed Oct 09, 2019 9:39 am
MotoTrojan wrote:
Wed Oct 09, 2019 9:35 am
I’m 25% equity.
I am 20% of stocks. That works out to 12% of my overall 60/40 portfolio. I find the international to be a drag on my portfolio, so I don't want to increase it.
That's how you know it is working. If everything performs the same, or if everything is up at once, that is when you don't need any international. Under-performance is confirmation that the two don't move in lockstep and is an argument in favor of market cap for international.
Not if it under-performs a lot more than it out-performs.
Which, of course, it does not do.

These rationalizations keep popping up like Whack-A-Mole, no many how many times they are proven false.
"Far more money has been lost by investors preparing for corrections than has been lost in corrections themselves." ~~ Peter Lynch

Cochese
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Re: INTERNATIONALS 20% of Equities or 20% of Portfolio?

Post by Cochese » Wed Oct 09, 2019 6:54 pm

hisdudeness wrote:
Wed Oct 09, 2019 6:45 pm
JoMoney wrote:
Wed Oct 09, 2019 12:22 am
Mr. Bogle's recommendation was no more than 20% of equities
John Bogle wrote:Image
There it is. Jack Bogle recommended zero to twenty percent of equities in international.
I will never understand the thinking of the New Age Progressive Market Weight Zealots.
Maybe ex US will outperform the US for the next ten years, but doubt it. I have been real glad not to have suffered (much) international drag for the last decade, and currently own zero.
Recency Bias? Maybe. Xenophobia? Nope.

There it is.

An argument from authority.

z3r0c00l
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Re: INTERNATIONALS 20% of Equities or 20% of Portfolio?

Post by z3r0c00l » Wed Oct 09, 2019 7:15 pm

hisdudeness wrote:
Wed Oct 09, 2019 6:54 pm
I will never understand the thinking of the New Age Progressive Market Weight Zealots.
So I presume you only own 20% of the SP 500 in your mutual fund? Or are you a market weight zealot, but only domestically?

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305pelusa
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Re: INTERNATIONALS 20% of Equities or 20% of Portfolio?

Post by 305pelusa » Wed Oct 09, 2019 7:25 pm

visualguy wrote:
Wed Oct 09, 2019 6:02 pm
305pelusa wrote:
Wed Oct 09, 2019 5:34 pm
visualguy wrote:
Wed Oct 09, 2019 4:48 pm
Trader Joe wrote:
Wed Oct 09, 2019 2:10 pm
rascott wrote:
Wed Oct 09, 2019 12:25 am
False comments above.

Bogle recommend 0% international...... but was ok with someone going up to 20%.

Watch

https://youtu.be/P54trh0Rre8
This is the correct answer. For myself, my international allocation of equities is also 0% - in full alignment with both John Bogle and Warren Buffett.
0% for me too - both of equities and the total portfolio :happy
The only person in my family (or even extended family) who has ex-US is my dad who has 15% (of equities), which is the currently recommended allocation by his private bank that is managing his portfolio. Not all pros agree with Vanguard, evidently.
A Merrill Edge adviser I met a year ago (with 30+ years of experience and high up) was explaining her portfolio recommendations in case I hired her for management. This Pro recommended no more than 10% Int equities. She also recommended no long term bonds and equity exposure with individual stocks (no index funds).

No thanks, I'll stick to Vanguard pros.
It's not coming from an advisor. The allocations and tactical adjustments are coming from their research group which has some top-notch folks. Vanguard's optimistic view on ex-US is not universal:

https://ustrustaem.fs.ml.com/content/da ... ly2019.pdf
So you're telling me Merrill Edge's finest are recommending portfolios of 30+ individual stocks to their clients?

That seems worse to me haha.

TropikThunder
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Re: INTERNATIONALS 20% of Equities or 20% of Portfolio?

Post by TropikThunder » Wed Oct 09, 2019 7:38 pm

visualguy wrote:
Wed Oct 09, 2019 6:02 pm
It's not coming from an advisor. The allocations and tactical adjustments are coming from their research group which has some top-notch folks. Vanguard's optimistic view on ex-US is not universal:

https://ustrustaem.fs.ml.com/content/da ... ly2019.pdf
Do the other Target Date fund providers agree with Vanguard, or with ML?

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abuss368
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Re: INTERNATIONALS 20% of Equities or 20% of Portfolio?

Post by abuss368 » Wed Oct 09, 2019 8:27 pm

Vanguard investment experts recommend from 20% of stocks up to market weight of approximately 50% of equities (the changes daily).

Vanguard has increased the percentage from 20%, then 30%, then 40% of stocks over the years. They increased international bonds from 20% of bonds to 30%.
John C. Bogle: "Simplicity is the master key to financial success."

lostdog
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Re: INTERNATIONALS 20% of Equities or 20% of Portfolio?

Post by lostdog » Wed Oct 09, 2019 11:06 pm

z3r0c00l wrote:
Wed Oct 09, 2019 7:15 pm
hisdudeness wrote:
Wed Oct 09, 2019 6:54 pm
I will never understand the thinking of the New Age Progressive Market Weight Zealots.
So I presume you only own 20% of the SP 500 in your mutual fund? Or are you a market weight zealot, but only domestically?
This pretty much sums it up on what I was saying earlier in this thread. The U.S. only club demographics are mostly from an earlier era. It's against the rules to discuss politics, religion, personal beliefs and biases so they'll come up with some other excuses
VTWAX and chill.

petulant
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Re: INTERNATIONALS 20% of Equities or 20% of Portfolio?

Post by petulant » Thu Oct 10, 2019 7:16 am

lostdog wrote:
Wed Oct 09, 2019 11:06 pm
z3r0c00l wrote:
Wed Oct 09, 2019 7:15 pm
hisdudeness wrote:
Wed Oct 09, 2019 6:54 pm
I will never understand the thinking of the New Age Progressive Market Weight Zealots.
So I presume you only own 20% of the SP 500 in your mutual fund? Or are you a market weight zealot, but only domestically?
This pretty much sums it up on what I was saying earlier in this thread. The U.S. only club demographics are mostly from an earlier era. It's against the rules to discuss politics, religion, personal beliefs and biases so they'll come up with some other excuses
The legitimate reasons for home bias have been discussed exhaustively and links to Vanguard papers explaining some of them have been linked previously. Apparently most pro-international people also support them since the mainstream recommendation here is a 40% fixed allocation, not market weight. The condescending attitude I am seeing is completely unnecessary here.

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