The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: Cordivae 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?
-
Here's a good read:
https://www.barrons.com/articles/the-best-place-to-invest-before-the-u-s-dollar-plunges-isnt-gold-51592994601 (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.
-
Yup, I'm 100% VT (https://investor.vanguard.com/etf/profile/VT) or VT equivalents because of this and the political risk in the USA right now.