Quote:
Originally Posted by Mr.Coffee
Would you ever stray from your investment strategy (adds up to 110% by the way, assumed typo on bonds?). By this I mean given the direction on US, and that people like Buffett who’s always historically been a pro US stocks kinda guy and seems to be distancing himself slightly from that strategy combined with the future of that nation, would you ever move away from US markets and shift to more international?
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Sorry about the typo: meant 40% on US stocks. So essentially a 50/50 stock bond split.
I don’t really see straying from my current split except as noted in the ETA below. 10% international is 20% of my total equity allocation, and I’m comfortable with that. A lot of people (experts, real and armchair) suggest anywhere from 10 to 33% of equities be in international, so 20% is a happy medium for me.
Plus, many US companies have a lot of international exposure already, so even my 40% us stock holding has a bit of a hidden and embedded international component to it.
ETA: also, at some point, one cares more about maintaining the portfolio than growing it significantly. I may be there now, where I care more about a return of the portfolio than a return on the portfolio, which explains the rather conservative asset allocation. I could end getting killed by inflation, for example, but I’m willing to take that risk now. If inflation really spikes or I feel comfortable with the annual spend, I may drift to a 60/40 portfolio, but I don’t think anyone can really market time inflation and portfolio drift is probably a few years away anyway.