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Learning, Sharing, and Teaching => Investor Alley => Topic started by: heybro on October 07, 2014, 02:05:33 AM

Title: What is the highest International % You'd Go?
Post by: heybro on October 07, 2014, 02:05:33 AM
What is the highest International % You'd Go?
Title: Re: What is the highest International % You'd Go?
Post by: GGNoob on October 07, 2014, 07:05:14 AM
When choosing my own allocation, the highest I'd consider is 50%. I was investing with Betterment for a while and at 100% stocks I was 54% international and 46% US. Most seem to range from 20% to 50% on their international allocation.
Title: Re: What is the highest International % You'd Go?
Post by: foobar on October 07, 2014, 07:14:50 AM
When choosing my own allocation, the highest I'd consider is 50%. I was investing with Betterment for a while and at 100% stocks I was 54% international and 46% US. Most seem to range from 20% to 50% on their international allocation.

50% is about market cap weighting and a reasonable start basis. The argument for dropping it to 25-30% is homecourt bias and slightly lower fees.
Title: Re: What is the highest International % You'd Go?
Post by: GGNoob on October 07, 2014, 07:28:39 AM
50% is about market cap weighting and a reasonable start basis. The argument for dropping it to 25-30% is homecourt bias and slightly lower fees.

Ya, pretty much.
Title: Re: What is the highest International % You'd Go?
Post by: hodedofome on October 07, 2014, 08:17:07 AM
I'd go up to 100% if the market environment called for it.
Title: Re: What is the highest International % You'd Go?
Post by: arebelspy on October 07, 2014, 04:19:38 PM
I'd go up to 100% if the market environment called for it.

+1.
Title: Re: What is the highest International % You'd Go?
Post by: NP on October 07, 2014, 04:41:53 PM
Up to 70% and never below 60% under normal circumstances (now), between 45% and 85% if really unusual market conditions called for it (unlikely), 100% if the U.S. somehow totally went down the drain (extremely unlikely in the foreseeable future).
Title: Re: What is the highest International % You'd Go?
Post by: Grateful Stache on October 07, 2014, 06:33:03 PM
I'd go up to 100% if the market environment called for it.

+1.

OK, Arebelspy, because so many folks respect you so much around here (including me), I need some explanation for this. Isn't this market timing?

OP: I'm at 40%. Not quite market cap, but higher than what the Bogleheads and Vanguard recommend.

Cheers.
Title: Re: What is the highest International % You'd Go?
Post by: arebelspy on October 07, 2014, 08:31:00 PM
I'd go up to 100% if the market environment called for it.

+1.

OK, Arebelspy, because so many folks respect you so much around here (including me), I need some explanation for this. Isn't this market timing?

It depends.  There's certainly some ways to do it that is market timing ("oh no, US stocks fell, I'd better sell them all and go all international"), and there's ways that don't involve market timing ("I'm going to be FIRE'd for 40 years, I don't like the U.S.'s prospects over the next 40 years versus the rest of the world, and am planning on living overseas, so there is no need to be country specific, so my long term AA is focused around the total world market return, and it's written into my long term plan and is phased into over X period").
Title: Re: What is the highest International % You'd Go?
Post by: daverobev on October 08, 2014, 04:37:19 PM
US stocks *are* international, as are UK, Japanese, Chinese etc, etc.

You're better off thinking of global vs domestic... and that line can usually somewhat be drawn by looking at different cap size. For the UK at least, the FTSE 100 is mostly multinationals, where the FTSE 250 is much more UK centric.

KO, MCD, GE, MSFT, AAPL... About as international as BP, ULVR, Shell, HSBC...
Title: Re: What is the highest International % You'd Go?
Post by: CanuckExpat on October 12, 2014, 12:24:27 AM
The argument for dropping it to 25-30% is homecourt bias and slightly lower fees.
I'd add possibly differing tax treatment and currency risk as well (assuming you plan to spend in domestic dollars).

The highest I'd go is market cap weighting, though 50% US and 50% International is close enough and conveniently round that I'd rather stick to for the time being..