User:LadyGeek/John Bogle's view on global investing

 represents the opinions of John C. Bogle on holding investments outside the US.

"Common Sense on Mutual Funds"
Bogle provided an exposition of his view in Chapter 8, "On Global Investing," in Common Sense on Mutual Funds. Following his subheads, he makes these points:


 * The chapter subtitle, "Acres of Diamonds," references "a classic essay by Dr. Russell Conwell, founder of Temple University." "The moral is clear and simple: stay home and dig in your own garden, instead of tempting fate in an alien world.... Here in the United States, we have, at least at the moment, the most productive economy, the greatest innovation, the most hospitable legal environment, and the finest capital markets on the planet."
 * "Overseas investments... are not essential, nor even necessary, to a well-diversified portfolio."
 * "For investors who disagree--and there are some valid reasons for global investing--I suggest limiting international investments to a maximum of 20 percent of a global equity portfolio.
 * The Global Portfolio Extreme: "Today's conventional wisdom suggests otherwise.... Some [academic theorists] recommend that the ideal equity portfolio should consist of holding of each nation's stocks at their world-market weight... more than half of the assets... for a US investor... would be placed outside the United States.... The other side of the story was well presented, in late 1997, by Wall Street Journal columnist Roger Lowenstein, who called it "Global-Investing bunk...."
 * Currency Risk and Returns: "In the very long run... foreign currency risk relative to the US dollar should be a neutral factor." Fluctuations create illusory impressions of periods of excess foreign returns.
 * The Global Efficient Frontier: The efficient frontier for US versus international holdings has been widely unstable and should not be relied on to guide allocation choice.
 * International Economies... tbd
 * The Record of Global Investors: the evidence from actual mutual funds investing globally "has not been inspiring."
 * Constructing Your Own Global Portfolio: tbd
 * Indexing in International Markets--A Better Way?: tbd
 * The Accidental Tourist: tbd
 * "Acres of Diamonds" Revisited: "You can lead a happy life without leaving home."