Hi, I'm a European investor, and I'm considering this strategy for part of my invested money.
Does anyone have recommendations for international investors? Is there anyone already using this strategy?
I'm specifically looking for info on which funds, ETFs or indices I should use, and which lookback periods seem appropriate. Any ideas? Since US and European markets are pretty correlated, does it make sense to e.g. choose S&P500 and EuroStoxx600 (plus some emerging markets for example)?
Due to currency valuations there was quite a different performance this year, so maybe the correlation isn't that big after all if one considers the currency exchange ratios.
I know Mr. Antonacci has a post on his blog about how to implement this as a Canadian, Australian or Japanese investor, which I'm not. I will read that thing again more carefully.
One big problem is that I don't have any tax advantaged account, every transaction is a potential taxable event, but losses can be used to reduce gains, carried over indefinitely, and while the capital gains tax is about 25% (automatic withholding) my personal tax rate is most likely lower and I will eventually get some of the money back.
If anyone has any recommendations, links, ideas how to use this strategy in my situation that would be great.