Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
At one point i had ~15% of my portfolio in SCHE and SCHF. With US dominating the last 15 years it got smaller and smaller and finally last year I sold almost all of the remaining shares. I just couldn't look at it any more and it has been a drag on overall return, but thankfully not to a large degree.
About 20% international equites, 10% international bonds. The prognosticators have been saying international is the way to go for years and years now. Just hasn’t happened, yet.
I'm about 30% international, the individual stocks that happen to be non-US have done great but the broader ETFs have been a drag as the US market has continued to have multiple expansion and international has not plus better earnings growth here.
I'm kind of stubborn / stupid on holding and adding. VXUS has a blended P/E of 12.5 and >3% dividend yield that should hopefully play out well eventually even if the last 15 years has been a dud.
Not trying to time valuation convergence or anything just keeping on keeping on with an allocation.
Companies in Europe’s Stoxx 600 benchmark make less than half their sales in Europe, according to FactSet data, and the U.S. is their single biggest market, at 23% of revenue. In other words, European stocks don't rely as much on the European economy as US stocks rely upon the US economy.
When buying international companies, I'm not sure you get as much diversification as you might think.
But their are warning signs for the US economy and hence US stock markets. US federal, state and local borrowing will hit 127% of GDP this year, according to the IMF, or 100% when debt owned by parts of government are netted out. The euro area—in a debt meltdown a decade ago—is in better shape, with debt of 88% of GDP, or 74% net.
Nicolai Tangen, who runs Norges Bank Investment Management, Norway’s sovereign-wealth fund, puts it this way: “As a socially conscious European it’s not a bad thing to live in Oslo and invest in America.”
About 20% international equites, 10% international bonds. The prognosticators have been saying international is the way to go for years and years now. Just hasn’t happened, yet.
Everyone will jump onto the International bandwagon after it has appreciated about 40% in value.
It's a perennial debate. For years, the "fundamentals" have pointed to impending handsome outperformance by ex-US stocks... and for years, said fundamentals have been handily belied.
If it doesn't violate the TOS, I can post a link to the forum, where now for some 100 pages, there's been a running discussion on "arguments pro/con ex-US equity investment". In brief, the pro-US argument hinges on American exceptionalism, whereas the pro-ex-US argument denies exceptionalism, claiming that everything is cyclical.
"International stocks have historically outperformed in periods of lower U.S. stock returns when we analyze 10-year rolling periods from March 1986 to December 2022. Historically, international stocks outperformed 96% of the time when U.S. stocks returned less than 6% and 100% of the time when U.S. stocks returned less than 4%."
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
