Announcement

Collapse
No announcement yet.

Changing AA for international vs domestic

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Changing AA for international vs domestic

    I was just curious if anyone here was thinking of changing their current asset allocation to increase their international allocation. With the prolonged domestic bull market and relatively low returns in international over the past decade, it seems like a ripe time to invest before the inevitable reversion to the mean occurs for both domestic and international.

    I like this Callan's chart for comparing indices: https://www.callan.com/wp-content/uploads/2019/03/Classic-Periodic-Table-2019.pdf

  • #2
    Nope.

    Comment


    • #3
      Me neither, but already more heavily weighted international--living dangerously.

      Comment


      • #4
        I am thinking of increasing my amount. I just chose an arbitrary number of 20% of equities, but there was no rhyme or reason why I chose that number. I am thinking of increasing to 40%. Maybe also adding 10% emerging markets as well, instead of the market weighting for EM.

        Similarly, does anyone tilt into international value and international small? I currently only have VXUS as my international weighting, but that may change as I research more.

        Comment


        • #5
          if you are in international stocks and they go down and you are in domestic stock and they go up, your asset allocation will have already changed.  So, to get your asset allocation back on track you would rebalance by either selling your domestic or buying international.

          To me, your idea seems like selling high and buying low.

          Comment


          • #6




            I was just curious if anyone here was thinking of changing their current asset allocation to increase their international allocation. With the prolonged domestic bull market and relatively low returns in international over the past decade, it seems like a ripe time to invest before the inevitable reversion to the mean occurs for both domestic and international.

            I like this Callan’s chart for comparing indices: https://www.callan.com/wp-content/uploads/2019/03/Classic-Periodic-Table-2019.pdf
            Click to expand...




             

            Lots of things to consider changing. I like this chart for comparing sectors. These quilt things make AA tilts seem alot like roulette. Put your chips on the right spot and you win!

            https://casimg.com/w/articles-attachments/1/5a4/b7bdf9998f.png

             

            Comment


            • #7
              Have you read vanguard's white paper x-ray? Start there.

              Comment


              • #8
                Curious what most folks international percentage here.

                30-40% for me

                Comment


                • #9
                  About 35% of equities in x-US with a tilt towards small cap.  Figured small cap will zig when the US or large cap international might zag.  Using VYMI for a value tilt too.  Hoping companies in EM and Int that are paying dividends are a little more honest with their book keeping.

                  Comment


                  • #10




                    Have you read vanguard’s white paper x-ray? Start there.
                    Click to expand...


                    No I have not. Maybe I will check it out. Do you have a link handy?

                    Comment


                    • #11
                      Of course.
                      The new one is from 2019 and is why vanguard changed their TDF.
                      The original is from 2012.

                      You can search "vanguard global equity PDF" for both links.

                      Comment

                      Working...
                      X