Foreign market conundrum...

armor99

Full time employment: Posting here.
Joined
Feb 24, 2007
Messages
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I currently have my Roth IRA with Vanguard. Low fees, lots of choices, a no brainer there. I also currently have 1/3 of that Roth IRA invested in VEIEX, that is their foreign emerging markets fund. Wow... did I ever hit the jackpot on that decision when I invested in it last year! As of today they are at a return of over 47%! The highest returning fund that vanguard offers. Hopefully there will not be a huge reversal of fortune, before the year is out. This brings me to my question to you all.
I learned a long time ago not to change my investments more than once a year, ever time I ever tried that, I wound up loosing. At the end of this year I get to decide whether to pull out of VEIEX or keep things the way they are. The cyclical nature of markets tells me that anything that goes up that fast is heading for a decline. On the other hand, with the US dollar being so weak at this time, maybe it does make sense to stick in it for a while longer. Just wondering what other people here think. Others might even be in the same position. Thanks....
 
I also have a large percentage of my assets allocated to foreign equity, but I won't be making any changes based on its recent performance. I'm just going to stick to my usual portfolio rebalancing every 2 years. When the time comes, I might have to sell some of the foreign equity to rebalance things, but I'm definitely not pulling out. I'm sticking with my asset allocation.
 
Leave it imo.

Personally I am aiming for ~35% international, with ~7-10% emerging markets. But I'm a believer of letting winners run, at least until it becomes ridiculous. And I don't think it is ridiculous yet...
 
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