S&P 500 International Exposure

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Taylor Larimore
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Re: S&P 500 International Exposure

Post by Taylor Larimore »

abuss368 wrote: Sun Sep 19, 2021 11:42 am
visualguy wrote: Fri Sep 17, 2021 4:19 pm
mkpainter wrote: Fri Sep 17, 2021 4:07 pm So with that international exposure through the S&P 500, that Jack Bogle has clearly stated, why do I still need an international index fund?
You don't need it. Some want to own stocks traded on non-US stock markets for various reasons - there are many threads about this. Many here don't invest in foreign stock markets, and even the author of some of those books you mentioned (about 3-funds) stopped investing in ex-US a while back, although he still recommends 20%.
Hi visualguy -

I believe you may be referring to Taylor and his excellent book “The Bogleheads Guide to the Three Fund Portfolio”. If I recall, Taylor had a take a RMD from a small IRA balance that included Total International. He closed the account thereafter.

Taylor, likes both the Two Fund and Three Fund Portfolio, but has a slight preference for the Three Fund Portfolio as he has discussed the risks of Japan in the late 1980’s and 1990’s.

Hopefully Taylor will see this post and provide his thoughts!

🚀
Tony
Tony:

I prefer BOTH the Two-Fund and the Three-Fund total market portfolios. BOTH are simple, low-cost, diversified and tax-efficient.

Best wishes
Taylor
Jack Bogle's Words of Wisdom: "The beauty of owning the market is that you eliminate individual stock risk, you eliminate market sector risk, and you eliminate manager risk. -- "Never think you know more than the market. Nobody does."
"Simplicity is the master key to financial success." -- Jack Bogle
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Re: S&P 500 International Exposure

Post by abuss368 »

nedsaid wrote: Sun Sep 19, 2021 12:01 pm
Look to Japan for the answer. Seeing that Japan has a very export driven economy, Japanese companies derived a lot of their revenue from overseas, particularly the United States. This "International exposure" didn't save the Japanese Stock Market from a 30 year bear market.
Hi nedsaid -

That is an excellent point! Japan is an export driven economy with a lot of “international” exposure in the earnings of their companies. I did not look at Japan from this angle previously.

Best.
💪
Tony
John C. Bogle: “Simplicity is the master key to financial success."
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Re: S&P 500 International Exposure

Post by abuss368 »

Taylor Larimore wrote: Sun Sep 19, 2021 12:18 pm
abuss368 wrote: Sun Sep 19, 2021 11:42 am
visualguy wrote: Fri Sep 17, 2021 4:19 pm
mkpainter wrote: Fri Sep 17, 2021 4:07 pm So with that international exposure through the S&P 500, that Jack Bogle has clearly stated, why do I still need an international index fund?
You don't need it. Some want to own stocks traded on non-US stock markets for various reasons - there are many threads about this. Many here don't invest in foreign stock markets, and even the author of some of those books you mentioned (about 3-funds) stopped investing in ex-US a while back, although he still recommends 20%.
Hi visualguy -

I believe you may be referring to Taylor and his excellent book “The Bogleheads Guide to the Three Fund Portfolio”. If I recall, Taylor had a take a RMD from a small IRA balance that included Total International. He closed the account thereafter.

Taylor, likes both the Two Fund and Three Fund Portfolio, but has a slight preference for the Three Fund Portfolio as he has discussed the risks of Japan in the late 1980’s and 1990’s.

Hopefully Taylor will see this post and provide his thoughts!

🚀
Tony
Tony:

I prefer BOTH the Two-Fund and the Three-Fund total market portfolios. BOTH are simple, low-cost, diversified and tax-efficient.

Best wishes
Taylor
Jack Bogle's Words of Wisdom: "The beauty of owning the market is that you eliminate individual stock risk, you eliminate market sector risk, and you eliminate manager risk. -- "Never think you know more than the market. Nobody does."
Thanks Taylor! I hope you are well.

Best.
Tony
John C. Bogle: “Simplicity is the master key to financial success."
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Que1999
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Re: S&P 500 International Exposure

Post by Que1999 »

abuss368 wrote: Sun Sep 19, 2021 12:36 pm
nedsaid wrote: Sun Sep 19, 2021 12:01 pm
Look to Japan for the answer. Seeing that Japan has a very export driven economy, Japanese companies derived a lot of their revenue from overseas, particularly the United States. This "International exposure" didn't save the Japanese Stock Market from a 30 year bear market.
Hi nedsaid -

That is an excellent point! Japan is an export driven economy with a lot of “international” exposure in the earnings of their companies. I did not look at Japan from this angle previously.

Best.
💪
Tony
Hard to argue this point. Well said, ned.
:beer
Somethingwitty92912
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Re: S&P 500 International Exposure

Post by Somethingwitty92912 »

Da5id wrote: Sun Sep 19, 2021 11:47 am
Somethingwitty92912 wrote: Sun Sep 19, 2021 11:30 am I find that the earth orbiting the star at 10,000 miles per hour a bit off putting, however it doesn’t make it any less true.
This seems like a non-sequitur to me. The earth's orbital speed is a measurable/testable fact (~67,000 mph I think, not 10K?). Whether or not one should hold some international stocks is a belief about the relative performance or diversification benefits of US vs international going forward. As you say below, not a fact one can know in advance.

What I said I find off-putting is not 100% US investing. That is fine. It is excessive fervor or certainty on the subject. I'm not fond of fervor or certainty in the other direction either, though there is perhaps a bit less of it here. That is in good part because I feel like the predictive quality of the historical data is not great, and the extent to which knowledge about the qualities of the US vs international markets are priced into stock valuations is unclear. Feels way too muddy for people to express such certainty for my taste.
Somethingwitty92912 wrote: Sun Sep 19, 2021 11:30 am I don’t know what will happen I can’t predict the future anymore than anyone else. So no, I am not 100% certain of anything, however I sure hope it does for all our sakes.
Fair enough. However I think we as a country and I as an individual can do just fine if the US does or doesn't outperform the international stock market for the remainder of my lifetime (I'm in my 50s). My reaction to the uncertainty is to own some of each asset. Your reaction is different, it is to hope you are right about the future. And you may well be right, I'll be fine in that circumstance too. Not like I'm owning 100% international or such.
Of course it’s not exactly 10,000 miles per hour. How pedantic. However the comparison you made is as good for the geese as it is for the gander. Meaning to say you can’t know what will happen with international as well.

I explained before why I believe the states is the exception. Your diversification is diWORSEification.

The US out performs. You have international exposure via index because stocks are international companies. You are supporting governments that don’t support free markets. Currency risk is a real thing. An while past performance does not indicate the future it’s the only marker we have to go on. Then you will talk about mean reversion. And I will say that doesn’t apply to countries only companies. If the reserve currency country doesn’t maintain its status it will lead to political instability and war(it’s not simply about our performance I don’t think you understand global economics.) So, you may not care because your 50 but the rest of us might. Or, perhaps you have children or other younger loved ones.

Your argument breaks down to “you have a bias.” Mine is, so do you, and everything I just wrote above. [OT comments removed by admin LadyGeek]
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Re: S&P 500 International Exposure

Post by abuss368 »

Que1999 wrote: Sun Sep 19, 2021 12:45 pm
abuss368 wrote: Sun Sep 19, 2021 12:36 pm
nedsaid wrote: Sun Sep 19, 2021 12:01 pm
Look to Japan for the answer. Seeing that Japan has a very export driven economy, Japanese companies derived a lot of their revenue from overseas, particularly the United States. This "International exposure" didn't save the Japanese Stock Market from a 30 year bear market.
Hi nedsaid -

That is an excellent point! Japan is an export driven economy with a lot of “international” exposure in the earnings of their companies. I did not look at Japan from this angle previously.

Best.
💪
Tony
Hard to argue this point. Well said, ned.
:beer
I agree! Japan is more of an export (rather than import) driven economy. One would expect a Japan domestic fund to ride that out.

💪
Tony
John C. Bogle: “Simplicity is the master key to financial success."
Somethingwitty92912
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Re: S&P 500 International Exposure

Post by Somethingwitty92912 »

Que1999 wrote: Sun Sep 19, 2021 12:45 pm
abuss368 wrote: Sun Sep 19, 2021 12:36 pm
nedsaid wrote: Sun Sep 19, 2021 12:01 pm
Look to Japan for the answer. Seeing that Japan has a very export driven economy, Japanese companies derived a lot of their revenue from overseas, particularly the United States. This "International exposure" didn't save the Japanese Stock Market from a 30 year bear market.
Hi nedsaid -

That is an excellent point! Japan is an export driven economy with a lot of “international” exposure in the earnings of their companies. I did not look at Japan from this angle previously.

Best.
💪
Tony
Hard to argue this point. Well said, ned.
:beer
Very easy to argue this point. Japan is not the states. Just in land mass to say nothing of… population, access to natural resources, size of military, reserve currency status, position on the global stage. This “but what about Japan argument is so old. Just search for responses to it. It’s like comparing apples to world dominating super powers.
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Re: S&P 500 International Exposure

Post by abuss368 »

Somethingwitty92912 wrote: Sun Sep 19, 2021 12:50 pm
Que1999 wrote: Sun Sep 19, 2021 12:45 pm
abuss368 wrote: Sun Sep 19, 2021 12:36 pm
nedsaid wrote: Sun Sep 19, 2021 12:01 pm
Look to Japan for the answer. Seeing that Japan has a very export driven economy, Japanese companies derived a lot of their revenue from overseas, particularly the United States. This "International exposure" didn't save the Japanese Stock Market from a 30 year bear market.
Hi nedsaid -

That is an excellent point! Japan is an export driven economy with a lot of “international” exposure in the earnings of their companies. I did not look at Japan from this angle previously.

Best.
💪
Tony
Hard to argue this point. Well said, ned.
:beer
Very easy to argue this point. Japan is not the states. Just in land mass to say nothing of… population, access to natural resources, size of military, reserve currency status, position on the global stage. This “but what about Japan argument is so old. Just search for responses to it. It’s like comparing apples to world dominating super powers.
That is certainly the alternative viewpoint to a US only portfolio. I am not aware of any other Japan situations.

Best.
Tony
John C. Bogle: “Simplicity is the master key to financial success."
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nedsaid
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Re: S&P 500 International Exposure

Post by nedsaid »

abuss368 wrote: Sun Sep 19, 2021 12:36 pm
nedsaid wrote: Sun Sep 19, 2021 12:01 pm
Look to Japan for the answer. Seeing that Japan has a very export driven economy, Japanese companies derived a lot of their revenue from overseas, particularly the United States. This "International exposure" didn't save the Japanese Stock Market from a 30 year bear market.
Hi nedsaid -

That is an excellent point! Japan is an export driven economy with a lot of “international” exposure in the earnings of their companies. I did not look at Japan from this angle previously.

Best.
💪
Tony
As long as the United States maintains its unique advantages in the world economy, whether you invest in International Stocks or not would over long periods of time be a moot point. I don't know whether or not the U.S. will maintain those unique advantages, so I am hedging my bets.

There were big differences between 1989 Japan and 1989 United States. Those differences worked to our advantage and the U.S. had a bull market while Japan had a bear market. Economists are now saying that the U.S. is looking more and more like Japan, in fact the entire world economy might be seeing a Japan effect.

Keep in mind that back in 1989, we were told that the Japanese Economic Model was superior to ours and that we should do what they were doing. Thank goodness we didn't.

So Bogle wasn't wrong but things change. The United States is a much different country than it was 40 years ago and I am not sure that the assumptions that we have held regarding the U.S. are still true. Lots of things have changed.

It just seems prudent to diversify your risks as much as you can and to be in as many investable markets as possible. If Mars had a good stock market, I would consider interplanetary diversification. If the Vulcans, the Klingons, and the Romulans had investable stock markets, I would considered investing there as well. I am a Trekkie, I know. :wink:
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Re: S&P 500 International Exposure

Post by nedsaid »

Somethingwitty92912 wrote: Sun Sep 19, 2021 12:50 pm
Que1999 wrote: Sun Sep 19, 2021 12:45 pm
abuss368 wrote: Sun Sep 19, 2021 12:36 pm
nedsaid wrote: Sun Sep 19, 2021 12:01 pm
Look to Japan for the answer. Seeing that Japan has a very export driven economy, Japanese companies derived a lot of their revenue from overseas, particularly the United States. This "International exposure" didn't save the Japanese Stock Market from a 30 year bear market.
Hi nedsaid -

That is an excellent point! Japan is an export driven economy with a lot of “international” exposure in the earnings of their companies. I did not look at Japan from this angle previously.

Best.
💪
Tony
Hard to argue this point. Well said, ned.
:beer
Very easy to argue this point. Japan is not the states. Just in land mass to say nothing of… population, access to natural resources, size of military, reserve currency status, position on the global stage. This “but what about Japan argument is so old. Just search for responses to it. It’s like comparing apples to world dominating super powers.
All these things can change. Britannia ruled the waves in 1900 and now their navy barely rules the English Channel. 1900 wasn't all that long ago. The British Pound was the reserve currency until
after WWII. What seems immutable can change, the U.S. is no different.
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Re: S&P 500 International Exposure

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Somethingwitty92912 wrote: Sun Sep 19, 2021 12:47 pm Of course it’s not exactly 10,000 miles per hour. How pedantic. However the comparison you made is as good for the geese as it is for the gander. Meaning to say you can’t know what will happen with international as well.

I explained before why I believe the states is the exception. Your diversification is diWORSEification.

The US out performs. You have international exposure via index because stocks are international companies. You are supporting governments that don’t support free markets. Currency risk is a real thing. An while past performance does not indicate the future it’s the only marker we have to go on. Then you will talk about mean reversion. And I will say that doesn’t apply to countries only companies. If the reserve currency country doesn’t maintain its status it will lead to political instability and war(it’s not simply about our performance I don’t think you understand global economics.) So, you may not care because your 50 but the rest of us might. Or, perhaps you have children or other younger loved ones.

Your argument breaks down to “you have a bias.” Mine is, so do you, and everything I just wrote above. [OT comments removed by admin LadyGeek]
I just thought it odd that something you gave as an example of a fact was off by something like 6 fold.

"The US out performs" is true in the past, particularly strongly in the recent past which I feel feeds the zealotry on the subject. Whether it will in the future is unknown to me. Your bias seems to me to be "I know the future", despite saying that you don't. My "bias" is that I don't know the future. I own 60% US, so I guess you could say I'm "betting" on the US to outperform. But the reality is that I don't know, and freely admit it

I don't know the connection between "US is the reserve currency" and the beliefs that A) we can know prospectively that US stocks will outperform AND B) that knowledge isn't reflected in the prices/valuations. My tendency is to believe in market efficiency, but in other threads people have argued that there are factors (home country bias, barriers to foreign investment, whatever) that make it not operate in this context, and who knows they can be right.

I've not mentioned mean reversion. I think there will probably be periods of US and International outperformances relative to each other as in the past. Which will be a net better investment over my lifetime I don't know.
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Re: S&P 500 International Exposure

Post by Somethingwitty92912 »

nedsaid wrote: Sun Sep 19, 2021 1:02 pm
Somethingwitty92912 wrote: Sun Sep 19, 2021 12:50 pm
Que1999 wrote: Sun Sep 19, 2021 12:45 pm
abuss368 wrote: Sun Sep 19, 2021 12:36 pm
nedsaid wrote: Sun Sep 19, 2021 12:01 pm
Look to Japan for the answer. Seeing that Japan has a very export driven economy, Japanese companies derived a lot of their revenue from overseas, particularly the United States. This "International exposure" didn't save the Japanese Stock Market from a 30 year bear market.
Hi nedsaid -

That is an excellent point! Japan is an export driven economy with a lot of “international” exposure in the earnings of their companies. I did not look at Japan from this angle previously.

Best.
💪
Tony
Hard to argue this point. Well said, ned.
:beer
Very easy to argue this point. Japan is not the states. Just in land mass to say nothing of… population, access to natural resources, size of military, reserve currency status, position on the global stage. This “but what about Japan argument is so old. Just search for responses to it. It’s like comparing apples to world dominating super powers.
All these things can change. Britannia ruled the waves in 1900 and now their navy barely rules the English Channel. 1900 wasn't all that long ago. The British Pound was the reserve currency until
after WWII. What seems immutable can change, the U.S. is no different.
Some would argue that was the reason WW2 happened. Depending on how deep you want to go. I guess that’s just a fear of mine. I prefer this stability to another war.
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Re: S&P 500 International Exposure

Post by abuss368 »

nedsaid wrote: Sun Sep 19, 2021 1:02 pm
All these things can change. Britannia ruled the waves in 1900 and now their navy barely rules the English Channel. 1900 wasn't all that long ago. The British Pound was the reserve currency until
after WWII. What seems immutable can change, the U.S. is no different.
The world economies and markets are more global and interconnected today than at any point in history. Economies will continue to become even more connected. I do not see it ever going in reverse.

Best.
Tony
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Re: S&P 500 International Exposure

Post by Nathan Drake »

nedsaid wrote: Sun Sep 19, 2021 12:58 pm
abuss368 wrote: Sun Sep 19, 2021 12:36 pm
nedsaid wrote: Sun Sep 19, 2021 12:01 pm
Look to Japan for the answer. Seeing that Japan has a very export driven economy, Japanese companies derived a lot of their revenue from overseas, particularly the United States. This "International exposure" didn't save the Japanese Stock Market from a 30 year bear market.
Hi nedsaid -

That is an excellent point! Japan is an export driven economy with a lot of “international” exposure in the earnings of their companies. I did not look at Japan from this angle previously.

Best.
💪
Tony
As long as the United States maintains its unique advantages in the world economy, whether you invest in International Stocks or not would over long periods of time be a moot point. I don't know whether or not the U.S. will maintain those unique advantages, so I am hedging my bets.
I'd like to highlight this point. The US could still maintain unique advantages but have less investment returns. Everyone likes to talk about how the US was the best performing market the past few years - Russia was actually better in terms of returns, and it still has a single digit P/E after such a huge run. Is Russia structurally "better" than US? Or course not, but the price you pay for an investment matters. A LOT.

Historically there's not been a meaningful difference in P/E ratio for US vs. exUS (any large deviation has mean reverted). From this angle, the market has tended to perceive them both as equally risky. Over the past 10 years, inflows into US stocks has caused one of the biggest valuation spreads between the two in history. Is the market now perceiving US as less risky? If so, returns should be lower. Will the market change it's mind and perceive the US as similarly risky? Valuation compression will cause a significant decline to US assets. Will the market price in the US market as even LESS risky than it does even now at these lofty valuations? US markets MAY continue to outperform.

You can't really depend on valuation spreads to increase as your main source of return, which is the biggest reason for US stocks outperforming recently.
Last edited by Nathan Drake on Sun Sep 19, 2021 1:13 pm, edited 1 time in total.
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Somethingwitty92912
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Re: S&P 500 International Exposure

Post by Somethingwitty92912 »

Da5id wrote: Sun Sep 19, 2021 1:05 pm
Somethingwitty92912 wrote: Sun Sep 19, 2021 12:47 pm Of course it’s not exactly 10,000 miles per hour. How pedantic. However the comparison you made is as good for the geese as it is for the gander. Meaning to say you can’t know what will happen with international as well.

I explained before why I believe the states is the exception. Your diversification is diWORSEification.

The US out performs. You have international exposure via index because stocks are international companies. You are supporting governments that don’t support free markets. Currency risk is a real thing. An while past performance does not indicate the future it’s the only marker we have to go on. Then you will talk about mean reversion. And I will say that doesn’t apply to countries only companies. If the reserve currency country doesn’t maintain its status it will lead to political instability and war(it’s not simply about our performance I don’t think you understand global economics.) So, you may not care because your 50 but the rest of us might. Or, perhaps you have children or other younger loved ones.

Your argument breaks down to “you have a bias.” Mine is, so do you, and everything I just wrote above. But, it’s your money so feel free to own under performing assets which fund dictatorships and underperforming businesses that undercut workers in your own country. Whatever makes you happy, bub.
I just thought it odd that something you gave as an example of a fact was off by something like 6 fold.

"The US out performs" is true in the past, particularly strongly in the recent past which I feel feeds the zealotry on the subject. Whether it will in the future is unknown to me. Your bias seems to me to be "I know the future", despite saying that you don't. My "bias" is that I don't know the future. I own 60% US, so I guess you could say I'm "betting" on the US to outperform. But the reality is that I don't know, and freely admit it

I don't know the connection between "US is the reserve currency" and the beliefs that A) we can know prospectively that US stocks will outperform AND B) that knowledge isn't reflected in the prices/valuations. My tendency is to believe in market efficiency, but in other threads people have argued that there are factors (home country bias, barriers to foreign investment, whatever) that make it not operate in this context, and who knows they can be right.

I've not mentioned mean reversion. I think there will probably be periods of US and International outperformances relative to each other as in the past. Which will be a net better investment over my lifetime I don't know.
6fold would account for variability it’s not exact. It never is. On a galactic scale that could almost be almost irrelevant depending on the conversation. In fact almost nothing is measurable to absolute. You using this as some sorta of gotcha actually goes more to my point of your(our) lack of precise knowledge about many things. We are getting down in the weeds at this point an due to your latest response this seems like more a gotcha kinda conversation that is going in circles. So I am bowing out. Caio.
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Re: S&P 500 International Exposure

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So, in order for the US to have a 30-year bear market, conditions have to be identical to Japan in the late 80’s. Because all possible causes and outcomes of bear markets have already occurred - therefore, if the US doesn’t match every possible Japan metric related to its lost 30 years, then a 30 year bear market in the US is impossible. Got it.
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Re: S&P 500 International Exposure

Post by Nathan Drake »

JoMoney wrote: Sun Sep 19, 2021 9:45 am
burritoLover wrote: Sun Sep 19, 2021 8:56 am...
The rationalizations for an all-US portfolio are always hilarious. Keep them coming! :D
Laughing all the way to the bank :mrgreen:
A U.S. investor who felt ex.-US "diversification" was necessary would have payed something close to -.50% just in foreign tax withholding ('Gross Return' Index over 'Net Return') and closer to -.80% with other fees and expenses involved for an actual fund.
Image

You'd be laughing more to the bank if you had a 100% SCV portfolio (which I've heard you claim is just data mining in the past and pointed to the minor increase in basis points cost as a reason to avoid - just like exUS).

From 1972 to Present, a $100 initial investment had a CAGR of 14% and an ending balance of $67K compared to a CAGR of 10.8% and ending balance of $17k for US TSM.

Source:
https://www.youtube.com/watch?v=I0hoyfbZrp8

Somebody that diversifies understands that any portion of their portfolio may perform better than another one. There are always hot asset classes through various start/end dates you can cherry pick. But unfortunately those very hot asset classes can quickly turn into poor performers. (See: 00-09 for US TSM). So who would you rather be? The diversifier which had just as good, if not better, returns with less overall volatility and less prolonged periods of poor performance? Or the concentrated bettor where almost half the time the US TSM underperforms treasuries, that's a very long time to wait to capture a positive premium if you end up on the bad side of your start/end dates.
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nedsaid
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Re: S&P 500 International Exposure

Post by nedsaid »

burritoLover wrote: Sun Sep 19, 2021 1:17 pm So, in order for the US to have a 30-year bear market, conditions have to be identical to Japan in the late 80’s. Because all possible causes and outcomes of bear markets have already occurred - therefore, if the US doesn’t match every possible Japan metric related to its lost 30 years, then a 30 year bear market in the US is impossible. Got it.
History tends to rhyme and not repeat exactly. You are asserting things that no one here has said and thus are coming to a flawed conclusion. Just saying that it might be prudent to diversify Internationally. Knocking down strawmen is pretty easy.
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Beensabu
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Re: S&P 500 International Exposure

Post by Beensabu »

Somethingwitty92912 wrote: Sun Sep 19, 2021 8:35 am
Beensabu wrote: Sat Sep 18, 2021 8:55 pm
Somethingwitty92912 wrote: Sat Sep 18, 2021 6:55 pm If your argument is “nananana mine is better!” I’ll pass.
My argument is simply that whatever international exposure is provided by the S&P 500 does nothing to mitigate the risk of pursuing a single country strategy.
The country in question holds the world reserve currency. I’ll take that risk. Especially at the significantly high return. It’s well worth the risk premium.
Understood. Feel free to take whatever risk you wish.

However, you have said a thing that is untrue:
Stagflation cannot happen here because of the reserve currency status, I shouldn’t say cannot but let’s say if it were to you’d have a lot more to worry about than the balance of your portfolio. So I should say it won’t for everyone’s best interest.
Stagflation has happened here. While the dollar held reserve currency status.

That status is not a magic invincibility cloak. It is a privilege that grants a significant economic advantage and comes with a certain responsibility.

It is also not forever. A privilege is not a right. If the responsibility is not fulfilled, or the privilege is abused, then it goes away. It is not an intrinsic quality; it is an external status granted by the collective agreement of all.

Keep your eye on USD-denominated debt and whether it is growing or shrinking against debt denominated in other currencies.
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Re: S&P 500 International Exposure

Post by etfan »

nedsaid wrote: Sun Sep 19, 2021 12:01 pm Look to Japan for the answer. Seeing that Japan has a very export driven economy, Japanese companies derived a lot of their revenue from overseas, particularly the United States. This "International exposure" didn't save the Japanese Stock Market from a 30 year bear market.
But I imagine the Japanese investor who only owned Japanese stocks didn't do as well as the Japanese investor who diversified their portfolio to own international stocks. That seems like an argument against restricting your investments to one market only.
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Re: S&P 500 International Exposure

Post by LadyGeek »

I removed some off-topic comments. This thread has run its course and is locked (topic exhausted). See: Locked Topics
Moderators or site admins may lock a topic (set it so no more replies may be added) when a violation of posting policy has occurred. Occasionally, even if there are no overt violations of posting policy, a topic (or thread) will reach a point where the information content of the discussion has been essentially exhausted and further replies are much more likely to cause distress to the community than add anything of value.
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