To borrow here from deeper thinkers than myself:Define over-reliant, when 60% US and 40% ex-US is the world-cap weighting. I think it's fine if an investor wants to control their int'l exposure, but that's because they believe the US will outperform ex-US (a gamble without a working crystal ball, perhaps an informed gamble). But "over-reliant on int'l" when it meets the world-cap weighting is misleading in my view.They used to be a solid choice -- but have shifted in recent years to be overly reliant (IMO) on international.
Jack Bogle's Words of Wisdom: "My best judgement is that international holding should comprise 20% of equities at a maximum, and that a zero weight is fully acceptable in most portfolios."
Taylor makes a good case for 20% international: viewtopic.php?t=196956
I hold 20% international because I do believe that diversification is good for you. But it's been like downing cod liver oil every year, for more than a decade. I'm sure glad it wasn't 40%.
Statistics: Posted by Outer Marker — Sun Jan 26, 2025 7:12 pm