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Dollar Depreciation - International Index Funds
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Topic: Dollar Depreciation - International Index Funds (Read 1090 times)
Cordivae
5 O'Clock Shadow
Posts: 14
Dollar Depreciation - International Index Funds
«
on:
August 31, 2020, 09:36:02 AM »
Given that there is significant concern over potential depreciation of the Dollar with all the money the Fed is dumping into the equation, I was looking into unhedged international index funds as a form of diversification (the other option that keeps popping up is Gold). I know the recommendation of many is to follow a basic 3 or 4 fund portfolio and I set mine up to mirror the weights of Vanguards Target Date funds (which are more international heavy).
However, now that I've made my knee-jerk fear based rebalance (lets be real, my portfolio was 95% US Total Stock Market before... I'm lazy), I was looking at the historical performance of most of these international index funds and while the Yield is higher, the performance does seem way lower.
For reference:
https://seekingalpha.com/article/4371490-united-states-is-going-hyperinflation
https://www.forbes.com/sites/johnnavin/2020/08/14/warren-buffett-buys-nyse-gold-stock-why-its-a-fit-for-the-legendary-value-investor/#746b9457e6e5
Am I missing something?
«
Last Edit: August 31, 2020, 09:38:47 AM by Cordivae
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ChpBstrd
Walrus Stache
Posts: 7967
Location: A poor and backward Southern state known as minimum wage country
Re: Dollar Depreciation - International Index Funds
«
Reply #1 on:
August 31, 2020, 12:13:37 PM »
Here's a good read:
https://www.barrons.com/articles/the-best-place-to-invest-before-the-u-s-dollar-plunges-isnt-gold-51592994601
However, keep in mind that a bet on dollar weakness due to QE might be wrong. It was wrong for the past decade.
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PDXTabs
Walrus Stache
Posts: 5160
Age: 41
Location: Vancouver, WA, USA
Re: Dollar Depreciation - International Index Funds
«
Reply #2 on:
September 02, 2020, 09:28:35 AM »
Yup, I'm 100%
VT
or VT equivalents because of this and the political risk in the USA right now.
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Dollar Depreciation - International Index Funds