Author Topic: Dollar Depreciation - International Index Funds  (Read 441 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 »

ChpBstrd

  • Magnum Stache
  • ******
  • Posts: 2971
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.

PDXTabs

  • Magnum Stache
  • ******
  • Posts: 2552
  • Age: 38
  • Location: Portland, OR, 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.