Thank you both for your responses. It is helpful to have people to discuss this with.
Seattlecyclone graphs and excel spreadsheets are my love language so thank you for that.
Looks like perhaps we weren't weighted enough in emerging markets in the past.
I've been using portfolio visualizer to back test (going back to 1972) I see a 1-2% increase in returns, but a large increase in the standard deviation. That would indicate a higher volatility correct?
I realize that back testing is limited, but it is all that we have.
So I guess I need to decide if I think foreign exposure is a worthwhile risk for the future?
Couple other questions regarding foreign allocation-
-20% of this portfolio would be weighted to US Large Cap value stocks, I was assuming that I would by proxy getting some foreign exposure there as well. Is that a good assumption?
-If you were to increase the foreign market allocation, what other area would you decrease and why?
-And would you use a total foreign market fund, or other funds with different weights and why?
Again, thank you all for the help. I really feel like I need non-biased parties to bounce this off of.