FUEGO
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Nov 13, 2007
- Messages
- 7,746
So, does anyone think that it's time to shift Asset Allocations away from US-based stocks?
The point of the OP (I think) is that gov't meddling in profit-seeking firms will decrease the profitability of those firms. If this is true, US stocks are less desirable, while bonds and foreign stocks are more attractive. Hence, people who feel strongly enough about this should be changing their personal AA. Is anybody moving?
No; I already have an allocation with 50% US, 50% international. I didn't want to take on too much single country risk. And this approximates the total world market capitalization.
Other countries interfere with profit seeking firms to a much greater extent than the US does (via taxes, regulations, labor laws, corporate governance, etc). But it is a logical fallacy to say that "other countries are worse than the US" and therefore the US is justified in its actions. The US could always improve its policies.