Canadian Grunt
Recycles dryer sheets
Over the last few years I have been rethinking my asset allocation.
I have come to several conclusions based on my research and education. Yes, I have read all the books on asset allocation, know the historical relevance of international asset allocation for a portfolio, but can’t help thinking that Japan and Europe are going to languish for various reasons.
1. I have reallocated all my resources only to stocks and exchange traded funds that pay income or dividends. I have concluded there is a greater propensity for security from income producing investments than growth funds. I am willing to sacrifice greater growth for stability that the dividend provides as a floor during volatile markets.
2. I have moved my asset allocation away from international stocks to North American stocks with international exposure or areas servicing foreign countries. Resources, specifically diminishing ones such as oil stocks are my favourite, but financial and insurance companies are up there as well (I am speaking of Canadian banks and Insurance companies which are providing good returns and stable cash flow).
Any one else re-evaluating their foreign component?
I have come to several conclusions based on my research and education. Yes, I have read all the books on asset allocation, know the historical relevance of international asset allocation for a portfolio, but can’t help thinking that Japan and Europe are going to languish for various reasons.
1. I have reallocated all my resources only to stocks and exchange traded funds that pay income or dividends. I have concluded there is a greater propensity for security from income producing investments than growth funds. I am willing to sacrifice greater growth for stability that the dividend provides as a floor during volatile markets.
2. I have moved my asset allocation away from international stocks to North American stocks with international exposure or areas servicing foreign countries. Resources, specifically diminishing ones such as oil stocks are my favourite, but financial and insurance companies are up there as well (I am speaking of Canadian banks and Insurance companies which are providing good returns and stable cash flow).
Any one else re-evaluating their foreign component?