http://amateurassetallocator.com/2008/11/19/is-international-investing-riskier/ Amateur Asset Allocator Fri, 10 Feb 2012 18:16:33 +0000 hourly 1 http://wordpress.org/?v=3.2.1 http://amateurassetallocator.com/2008/11/19/is-international-investing-riskier/comment-page-1/#comment-2679 Cole Wed, 24 Dec 2008 19:23:01 +0000 http://amateurassetallocator.com/?p=314#comment-2679 Just want to point out that the world has changed alot over the 80 years. So the correllations we are ussing for our asset allocation probably wont hold up. Businesses are global now. The S&P 500 used to be representative of the US economy... now something like 52% of S&P 500 revenues comes internationally. And I believe 48% of the Europe 350 (can't remember the name of the index!) revenues comes from the US. Certainly in the large cap space more or less the only difference in returns is exchange rate fluctuations. In the future, I suspect there won't be US Large Cap and International Large Cap... just Large Cap. Emerging Markets and International Small Cap (yeah for Vanguard's new fund) should provide meaningful diversification benefits in the long haul! Just want to point out that the world has changed alot over the 80 years. So the correllations we are ussing for our asset allocation probably wont hold up. Businesses are global now. The S&P 500 used to be representative of the US economy… now something like 52% of S&P 500 revenues comes internationally. And I believe 48% of the Europe 350 (can’t remember the name of the index!) revenues comes from the US. Certainly in the large cap space more or less the only difference in returns is exchange rate fluctuations. In the future, I suspect there won’t be US Large Cap and International Large Cap… just Large Cap. Emerging Markets and International Small Cap (yeah for Vanguard’s new fund) should provide meaningful diversification benefits in the long haul!

]]> http://amateurassetallocator.com/2008/11/19/is-international-investing-riskier/comment-page-1/#comment-2308 Charles Kirkpatrick Thu, 20 Nov 2008 15:02:26 +0000 http://amateurassetallocator.com/?p=314#comment-2308 Please take a look at my new book "Beat the Market" (FT Press, 2008) Please take a look at my new book “Beat the Market” (FT Press, 2008)

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