Author Topic: Swedroe makes the case for International  (Read 2380 times)

DavidAnnArbor

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Swedroe makes the case for International
« on: October 11, 2017, 03:43:59 PM »
http://www.etf.com/sections/index-investor-corner/swedroe-non-us-valuations-attractive?nopaging=1

Larry Swedroe compares US index P/E and other metrics with International Developed and Emerging Market indices.

"Either method provides forward-looking return expectations for international stocks that come in about 2 percentage points higher than for U.S. stocks."

SeattleCPA

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Re: Swedroe makes the case for International
« Reply #1 on: October 11, 2017, 04:11:20 PM »
http://www.etf.com/sections/index-investor-corner/swedroe-non-us-valuations-attractive?nopaging=1

Larry Swedroe compares US index P/E and other metrics with International Developed and Emerging Market indices.

"Either method provides forward-looking return expectations for international stocks that come in about 2 percentage points higher than for U.S. stocks."

I agree with (maybe "accept" is a more accurate term?) Larry's analysis and conclusions.

P.S. I'm 15% in Developed markets and 10% in emerging markets...

wienerdog

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Re: Swedroe makes the case for International
« Reply #2 on: October 11, 2017, 04:11:58 PM »
I am already 30% in.  Should I go more?

VoteCthulu

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Re: Swedroe makes the case for International
« Reply #3 on: October 11, 2017, 05:11:30 PM »
Vanguard suggests 30-50 percent international equities. That's higher than I'm comfortable with, but it may well be correct.

JAYSLOL

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Re: Swedroe makes the case for International
« Reply #4 on: October 11, 2017, 05:19:51 PM »
I'm at 33%, and plan to stick to that till the bitter end

DavidAnnArbor

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Re: Swedroe makes the case for International
« Reply #5 on: October 11, 2017, 06:22:54 PM »
I'm supposed to be at 20% but I'm only at 18.5%. I should probably rebalance into some more international.

AdrianC

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Re: Swedroe makes the case for International
« Reply #6 on: October 12, 2017, 07:30:18 AM »
I'm with Larry.

Rebalanced into more international late last year. Now 53% US, 47% international. So far I'm a genius :-)

Roothy

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Re: Swedroe makes the case for International
« Reply #7 on: October 12, 2017, 07:57:48 AM »
My IPS states that I'm supposed to be going gradually up to 30% international.  I'm at 26% now, but my monthly regular buys are not getting me there very fast.  My IPS also states that I should "consider going to 40% international."  I guess it's not a great IPS term, since it's so vague.  I've been "considering" it for about a year.

Roothy

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Re: Swedroe makes the case for International
« Reply #8 on: October 12, 2017, 11:52:53 AM »
...aaaaand right before I decide to go ahead and at least get myself to 30% by rebalancing all at once, I read threads like this https://www.bogleheads.org/forum/viewtopic.php?p=3567983#p3567983  and once again, I just default to the gradual process of overweighting my monthly purchases into international.

I think this is one of those sorts of issues where it really just doesn't matter that much one way or another what you do, but chasing performance explicitly is a food's errand.

DavidAnnArbor

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Re: Swedroe makes the case for International
« Reply #9 on: October 12, 2017, 04:02:12 PM »
but chasing performance explicitly is a food's errand.

Definitely right about that.

bacchi

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Re: Swedroe makes the case for International
« Reply #10 on: October 12, 2017, 06:30:17 PM »
I'm at 37% but gradually moving to 53% international. It's a sloowww process.

theolympians

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Re: Swedroe makes the case for International
« Reply #11 on: October 12, 2017, 07:17:31 PM »
I am only 17% international.....

Radagast

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Re: Swedroe makes the case for International
« Reply #12 on: October 12, 2017, 07:49:44 PM »
Keep in mind people including Swedroe have been saying this since sometime in 2014 or even 2013, and it has only been good advice for purchases in ~2016 and later. But, I am also overweight in international. The 20%-50% range has historically been the optimum range for someone in the US over the long term (based strictly on the mathematics of currently fluctuations so far as I know).

aspiringnomad

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Re: Swedroe makes the case for International
« Reply #13 on: October 12, 2017, 11:28:24 PM »
My IPS states that I'm supposed to be going gradually up to 30% international.  I'm at 26% now, but my monthly regular buys are not getting me there very fast.  My IPS also states that I should "consider going to 40% international."  I guess it's not a great IPS term, since it's so vague.  I've been "considering" it for about a year.

That'd be a great IPS rule if IPS stood for Investment Policy Suggestion :)

I'm currently ~38% international and wish had more, so I'm working on it. I used to be very underweight international based on the "US stocks already have international exposure" sentiment, but now that I logically disagree with that line of thought, I'm moving as quickly as tax-efficiently possible to ~47% international.